Silver Technical Analysis
The silver market seems somewhat tight at the moment, as we are sitting just above the 50-day EMA as well as the 200-day EMA. The market seems to be somewhat consolidating in a range of $65 on the bottom and $70 on the top.
The 200-day and the 50-day EMA are both flat, and this does make a certain amount of sense if you think about what’s going on around the world. Interest rates remain elevated, and that tends to work against the value of non-yielding assets such as silver.
It Has Held Up Fairly Well
Ultimately, this is a market that is dealing with the 10-year at points in time going to 4.8%. But we also have heavy inflation coming out of the crude oil market, and that could be a bit of an issue as well.
As long as the oil situation remains so messy with the headlines coming out of the Persian Gulf, it’s difficult to imagine that the bond markets will be calm. This is a scenario that has been the norm for some time now, and there are no signs of it changing in the short-term.
Furthermore, we get the ECB rate hike, at least the expected rate hike, on Thursday. We also get CPI on Friday in the United States and then a Federal Reserve potential rate hike next week.
There’s a lot going on in the short term. It has held up fairly well. I do have to say that, but it just doesn’t have any momentum. Short-term traders are probably attracted to the somewhat well-defined range at the moment, as the markets are simply not giving bigger moves currently.
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