Silver Price Forecast: Bulls Eye Return to $65–$70 Range

Silver Technical Analysis

The silver market initially gapped lower on Friday as traders awaited the CPI numbers in the United States and, of course, dealt with higher-than-comfortable interest rates. That being said, this is a market that remains range-bound, and it is somewhat bullish in the sense that the core CPI numbers came out month over month at 0.3% instead of the expected 0.2%, and silver turned around and rallied after that.

I suspect that, at this point in time, most traders are looking at the Federal Reserve interest rate hike as a somewhat foregone conclusion, so it doesn’t have the effect on the market that it could have.

This Is Pretty Healthy

With that being said, we’re seemingly trying to recapture the overall sideways action between $65 and $70. We’ll wait to see if that plays out. But right now, this is pretty healthy. It shows that the market is still willing to just hang out here and perhaps wait for forward guidance coming from the Federal Reserve itself. This could be the next big mover, as bond markets seem relatively stable in reaction to the number.

So, that is Wednesday of next week. That will be very important. Watch interest rates. Interestingly enough, they are dropping at the moment in the United States after initially spiking, so that could be a little bit of help as well.

Furthermore, pay attention to the U.S. dollar. It will have its own part to play here as well, as the negative correlation could come into play in this market. Add to this that the weekend is coming, and the bounce was fairly impressive in this environment.

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