Silver Price Forecast – Silver Continues to Consolidate in Lackluster Performance

Silver Price Forecast Video for 06.10.23

Silver Markets Technical Analysis

Silver continues to be very volatile as we chop around in the same area that we have been in over the last couple of days. Keep in mind that we had recently plunged rather drastically, and perhaps more importantly from a technical analysis standpoint, have seen the 50-Day EMA break below the 200-Day EMA, in what is known as the “death cross.” This is a very bearish indicator that a lot of longer-term technical analysts will pay close attention to. That being said, technical analysis can only get you so far.

Looking at this chart, I think it’s pretty easy to see that the sellers are in control, and now we are simply waiting around to see what the next move is. I suspect that will be sorted out on Friday after the jobs report in the United States is released, because it will give you an idea as to where interest rates are going to go. Higher interest rates are absolutely toxic for silver, as we have seen over the last week or so. That being said, I look at any rally with a little bit of suspicion. Sure, it could open up the possibility of a move toward the $22.33 level above which I thought was rather impressive support, as it would test “market memory.” However, if we turn around and break down below the two hammers that we have formed over the last couple of days, they could open up a move down to the $20 level.

At the end of the day, this is going to come down to the short end of the yield curve in the United States, and of course the 10 year note. Interest rates rising in those markets will hammer silver, sending it down to $20 rather quickly. If they start to fall off, then that could give the catalyst for short-term rally in this market, but right now I think silver has a lot of problems, and not just interest rates. A higher US dollar and of course the fact that we may be heading into a rather large recession drives down demand for silver as it is also an industrial metal.

For a look at all of today’s economic events, check out our economic calendar.