Silver Price Forecast: Rising Rates Put Range Support at Risk

Silver Technical Analysis

The silver market has fallen a bit during the early part of the trading session here on Thursday as we are reaching the bottom of a range that we have been in, and the 50-day EMA as well as the 200-day EMA are both flat.

The real story here, of course, is that interest rates are punishing the silver market. Silver does not typically like higher interest rates. One thing that is giving silver a little bit of a buffer, though, is the fact that there’s so much in the way of demand for silver, and production is not growing to fill that demand.

Positive Outlook

Silver is still likely to be in demand over the long term.

So, longer term, I still believe in silver, and I still believe that silver will be one of our more bullish markets given enough time. The problem right now is the interest-rate behavior, how it is very explosive and just doesn’t look like it’s calming down.

Most of this is due to energy concerns and energy supply issues, which could cause massive energy inflation. So, it really has nothing to do with silver itself. It’s about oil and natural gas.

So, with that being the case, it’s unfortunate, but it does look like silver is going to struggle to take off. If we can bounce from here, then we might stay in that same little bit of a consolidation area between $63.50 and $70. If we break down, I suspect we might see some support near $60 based on the psychology of it and the fact that it was a cluster of trading previously.

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