Silver Price Analysis – Silver Tests Critical $57 Support Amid Stronger Greenback

Silver Technical Analysis

The silver market has shown itself to be a little bit negative during the early part of the trading session on Monday, as the attacks in the Middle East, of course, are causing some concerns out there when it comes to risk appetite. Keep in mind, though, from a longer-term standpoint, silver most certainly has a lot of demand out there and not enough supply. So, with that being said, I think you’ve got to look at this as a situation where traders are going to look at a lot of concerns in the form of the US dollar and higher rates.

Macro Headwinds Threaten Key Technical Support Boundaries

And as long as both of those are strong markets, the rates and the US dollar, that puts a little bit of downward pressure here. If we break down below the $57 level, I suspect it opens up a drop down to the $50 level. If we rally from here, I think those who are looking a little more short-term at the markets will interpret rallies that show signs of exhaustion as selling opportunities.

Longer term, I do like silver, and I think there will come a time when I want to not only buy silver, but this would be a longer-term buy-and-hold scenario, but we just aren’t there yet. This is a situation where people will look at the silver market with a bit of hesitation, but the overall longer-term outlook for silver is great from a fundamental standpoint.

If you’d like to know more about how to trade gold and silver, please visit our educational area.