Silver Technical Analysis
Silver dropped to kick off Tuesday’s session, gapping lower as the market continues to see noise coming from the interest rate markets more than anything else. This is true with most markets at the moment, as we are looking to see where we are going there and extracting that information in the markets to price assets such as this one.
Ultimately, this is a market that is very sensitive to interest rates rising, just as it is sensitive to interest rates falling. We are starting to see interest rates in the United States calm down a little bit, and that certainly helps silver’s case here to turn things around.
A Big Figure I Am Watching
The $60 level is an area that I think a lot of people will be watching. The $60 level is a large, round, psychologically significant figure, and an area that a lot of people would watch to see if there is any reaction. It had previously been a consolidation area as well.
With all of that being said, this is a market that I believe will perhaps at least offer the opportunity for a bounce. But if we can get some type of cooling of interest rates, then that opens up the possibility of a confluence that could send this market bouncing.
Longer term, I do like silver. There is a major need for silver for the electrification of the economy, and, of course, production is not picking up. While longer term I do like silver, I do think at this point in time it is all about rates, and rates are moving on the latest war headlines.
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