Silver Price Analysis – Silver Tests 200-Day EMA as Rate Pressures Mount

Silver Technical Analysis

The silver market has been hanging around the 200-day EMA for the last couple of days, but it did show a little bit of hesitation here in early Tuesday trading right at that same 200-day EMA. The market pulling back a bit is not a huge surprise, as technical indicators are so heavily followed. A lot of longer-term traders will be looking at this for determining the trend, and as we are approaching it, quite often we do see some pushback.

Technical Levels and Yield Dynamics

The 50-day EMA sits just below, and that could offer a bit of support. We’ll just have to wait and see. But I think the main story here is that the market just got a little overstretched. We can say the same thing about gold as well, and the two do tend, at least over the longer term, to move somewhat in tandem. The $60 level has been a strong support region going down to the $55 level, but now we’ll have to watch whether or not non-yielding assets get a bit of a bid with the higher interest rates being offered.

Traders will be watching interest rates, and they are a little higher during trading here on Tuesday, which typically works against silver, although it doesn’t have to. So, at this point in time, we have to ask: did we just form some type of bottoming pattern, or was it just another bump along the road? Volume suggests that there was real interest over the last couple of days, so we’ll see if this ends up being a move that continues to be followed.

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