Silver Price Forecast – Silver Continues to Move on Rates

Silver Technical Analysis

The silver market has rallied a little bit during the early part of the trading session here on Monday, with the $60 level offering a certain amount of support. That is an area that I think offers support all the way down to the $55 level, based on historical action, as there is a bit of a range of demand.

All things being equal, if this market were to continue to go higher, it’s likely that we could go drifting toward the 50-day EMA with a little bit of momentum.

Interest Rates in the United States Remain Elevated

Based on what we’ve seen recently, silver, of course, is very sensitive to interest rates. That’s one of the biggest fights here. Interest rates in the United States remain elevated, and therefore silver is very difficult to get overly aggressive with.

Longer term, the silver market certainly seems to have a line of interest in it, as the electrification of the global economy continues to be a priority and demand for silver is strong in comparison to the relatively weak output.

That being said, we still have a situation where interest rates are providing that downward pressure. So, it’s not a one-and-done type of straight shot up in the air like we saw about a year and a half ago.

All things being equal, I do think eventually the silver market gets bullish from a longer-term standpoint. I own physical silver and would own more, but in a leveraged market like the silver futures market or even CFD markets, we have to be a little bit more nimble than that.

This could be thought of as a buying opportunity. That being said, this market will have to be very responsive to the bond market, and therefore we have to be very cautious with elevated rates causing that downward pressure. Conversely, if rates fall apart here, that could be the tailwind that silver desperately needs.

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