Silver Price Forecast – Silver Moves with Rates Dropping on Friday

Jobs and inflation are the major factors here, but it is worth noting that the jobs report is notoriously volatile, and interest rates in America, while falling after the jobs report miss, are still pretty elevated. So, we will have to wait and see how this is going to go.

The $60 level Underneath Is Key

The $60 level underneath is a large, round, psychologically significant figure that I believe continues to be important. The market rallying from here would make a little bit of sense. If we continue to see rates fall, that will be the question du jour.

That being said, I do believe that it is probably a market that still has a lot of headwinds because of inflationary concerns and, of course, the fact that most of the inflation is based on energy. That is not a simple equation for central banks around the world. They do not simply start loosening monetary policy in that environment, so we will have to wait and see.

Interest Rates Impact on Silver

Silver does like lower rates, so do pay attention to those. If they continue to drop, then it is what it is. Most of the time, historically speaking, at least, silver thrives on lower rates. Rates are still pretty elevated, so when I say thrive, keep that in mind. It is not like we are going to go parabolic, but it does provide a little bit of support.

It is interesting that $60 has held so far. Longer term, I like silver. There is a lot of demand for silver out there from an actual fundamental standpoint, and there is not enough supply to satiate all of the demand most of the time.

This is an interesting spot. I suspect this is probably something that might become a little clearer on Monday morning. Friday does tend to be choppy after the jobs report as liquidity dries up.

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