Silver Technical Analysis
The silver market initially tried to rally during the session on Wednesday but gave up gains to show signs of hesitation near $68. The $68 level has been short-term resistance, but I look at this more like a market bouncing around between $65 and $70.
Currently, we are expecting a couple of announcements over the next few days that could have something to say as to where silver goes. PPI is on Thursday, and CPI is on Friday. Those are our last two inflationary measures before the next Federal Reserve interest rate decision on Wednesday of next week. This all could have a certain amount of influence on silver, as it is very sensitive to interest rates and where they are going, so I am watching that closely.
Pretty Good Longer-term Outlook for Silver
Overall, though, when I look at this, I cannot help but think the market is just on pins and needles, waiting to see what the next shot across the bow is, which might be literal if we are talking about tankers in the Strait of Hormuz, as energy prices are driving up inflation expectations.
The longer-term outlook for silver is actually pretty good. It is part of the electrification and AI trade as far as the build-out is concerned, and there is obvious demand from there. But at the same time, it is sensitive to interest rates, and that is part of what the drag has been.
For myself, I am looking at this as a short-term, choppy, range-bound market, with a bit of the occasional volatility out there.
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