Silver Price Analysis – Silver Tests $60 Resistance as Yields Drift Lower

Silver Technical Analysis

The silver market has rallied a bit during the early part of the trading session here on Tuesday as we continue to see a lot of noisy behavior, but ultimately this is a market that is starting to test the $60 level yet again. This is an area that has been resistance previously, and then after that, the $62.50 level has been resistance. The 50-day EMA is the moving average that a lot of traders will watch. This is an area that is technical resistance as well, so it is worth paying attention to.

Lower Yields and Energy Inflation Concerns

Ultimately, this is a market that is going to remain noisy, and it’s likely that we will continue to see a lot of questions asked about the interest rate market. It has seen lower yields during the session, and that, of course, helped silver with the idea that silver will continue to move based on inflationary expectations and the idea that we are electrifying the overall economy and driving up the massive demand for silver eventually.

With the Strait of Hormuz closed, it is a common consensus that energy inflation could be a problem, and that in and of itself could be an issue with silver, but ultimately silver is something that over the longer term I like a lot. I just think we need the rates to come down to truly take off. Silver is sideways, just like gold is, and I think short-term traders continue to play this with their range-bound systems quite well as we are just waiting for the next fundamental reason to get moving.

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