Silver Weekly Price Analysis – Silver Drops Hard to End the Week

Silver Markets Weekly Technical Analysis

The silver market initially tried to rally during the week and, for the most part, was somewhat okay, but Friday was pretty disastrous as the jobs number in the United States came out twice what was expected, and that made interest rates jump.

Silver is difficult to trade when you have raised interest rates because silver is a non-yielding asset. That being said, we find ourselves at the end of the week near the $70 level and I’m going to look at this area very carefully because if this market were to bounce, I think a lot of traders would be looking to the $75 level, possibly the $80 level.

Key Technical Levels and Central Bank Policy

If we break down from here, then we could go looking toward the $65 level, where the 50-week EMA is. This is a market that’s been gradually bouncing less and that is something to pay close attention to, but we’ll have to wait and see how things play out because, quite frankly, interest rates will remain elevated as long as we have to worry about supply chain and the like as far as issues, energy inflation, and now jobs keeping central banks tighter than originally thought.

If they stay tight for longer, silver could be in serious trouble. This next week is going to be crucial, and I’ll be paying close attention to how this plays out because it could set up the rest of the year. At this point, the next week or so could be crucial as to what happens next.