Silver Technical Analysis
The silver market fell early during the trading session on Tuesday as we are seeing interest rates in America rise, and that has worked against the value of non-yielding assets such as silver and gold. And also, it’s worth noting, though, while this is going on, supply is extraordinarily tight. In fact, we just had our 6th consecutive annual supply deficit, and that is a major problem.
This is going to be a major driver of silver going higher eventually, but in the short term, it looks like the silver supply and demand situation is taking a backseat to these interest rates and the interest rate outlook, as the oil markets rising throw more uncertainty into inflation and what the central banks will have to do.
Industrial Demand and Key Technical Levels
That being said, the World Silver Survey looks for industrial consumption to fall 3% in 2026, partially because of everything going on. And there have been some pundits out there marking down their longer-term forecast for the year to $68, such as major bank ING.
Ultimately, this is a market that is testing a couple of major moving averages, and if we were to break down below there, we could see a return to the $60 level. That’s an area that had been significant support previously. $70 still looks to be a bit resistant, and right now, we’re right in the middle of that with these moving averages.
Keep in mind the jobs report is on Friday, so the later we get into the week, the choppier and more sideways this could become, as we wait for that major news release.
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