Silver Price Analysis – Yields Continues to Pressure Silver on Friday

Silver continues to face headwinds as rising yields are a problem. The silver market looks as if it is threatening to break down below the $70 level again during the day on Friday as yields continue to rise in the United States, and even in other places like Germany now.

Watch the 4.30 level and then again at the 4.35 level in the 10-year yield. If we rise above those rates, it could cause chaos in the metals markets and silver looks particularly vulnerable at this point.

Technical Analysis and the H Pattern

In fact, if you are somebody who really looks at the technical analysis and patterns, then I think you have to recognize that we could make an argument for an H pattern here. And an H pattern is a very ugly pattern that typically will lead to selloffs.

I don’t think we’re going to collapse completely, but it’s very possible that we could revisit the 200-day EMA. Conversely, if those yields fall off like they did yesterday, then you could see an attempt to get to $75, but it’s a pretty ugly chart and I really don’t like the way silver’s behaving. This continues to be something that will be hard to ignore at this point in time.

Again, we’re still technically in the consolidation that we had been in, but things are not looking good here and if you’re trying to play the geopolitical risk game, that favors gold over silver anyway. Because of this, I am very cautious with this market, and don’t want to get aggressive heading into the weekend.

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