Silver Technical Analysis
The silver market continues to be very noisy just under the $70 level. And at this point in time, the large round psychology of $70 continues to put the market a little bit on its back foot. While we aren’t necessarily selling off, we certainly don’t have the momentum to break out. It’s worth noting that interest rates have dropped, but silver’s pretty much neutral. It initially rallied, and then went flat, and then rallied again. So we have to ask whether or not we are going to go stair-stepping our way higher or not.
The Monday session has been somewhat choppy in general, and silver won’t be any different. We’re sitting around waiting to find out what the sanctions are going to be against the Iranians by the Americans and whether or not this really ratchets up the war situation.
Longer-Term Demand vs. Short-Term Pressures
Silver has longer-term demand due to the electrification of the global economy and, of course, the fact that production just isn’t getting better. So, I like silver over the longer term, but in the short term, it will continue to have to play by the rules of paying attention to interest rates all over the place, but elevated, and of course the US dollar, which might be a little oversold.
So, a little bit of a recovery in the US dollar also could add a little bit of downward pressure. Ultimately though, I am looking to see if we get a little bit of a bounce from a pullback in order to get long, as it could offer value in a market that I think has a longer-term trajectory that’s very bullish. Again, though, this is all outside of random headlines.
