Silver Price Analysis – Yields and Geopolitics Stall Silver Near Key EMAs

Silver Technical Analysis

The silver market has dropped a bit during the early part of the Friday session, testing the 50-day EMA, only to turn around and bounce. By doing so, it suggests that we have quite a bit of noise here just waiting to happen. And quite frankly, that’s not a huge surprise considering that we’re heading into the weekend.

Traders might be a little bit nervous about holding into what could be a gap first thing Monday morning. After all, we still have all of the chaos around the Middle East going on. That doesn’t necessarily mean that we have to have a situation where we have a massive move. We could get a quiet weekend as well, and that’s part of the problem. We just don’t know what we are going to be looking at going forward, because the situation is one where the Iranians and the Americans are miles apart on what they’re willing to agree on. And that has a major influence, or at least implications, on inflation via energy.

200-Day EMA and Key Resistance

Higher yields typically will work against silver, so I think that’s part of the hesitation here. Furthermore, when we look at the price action, the structure, yes, we did break out of consolidation, but we haven’t made a major swing high, at least not quite yet.

We are hanging around the 200-day EMA, and that 200-day EMA is a major indicator of the trend, be it bullish or bearish. If we could break above $70, that could really get the bulls going.

Right now, though, I think it’s somewhat of a wait-and-see mode. We have seen some weaker economic numbers coming out of the United States that might be part of what’s going on here. But at the end of the day, there is still major headline risk.

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