Silver Weekly Technical Analysis
The silver market has pulled back a bit from the $60 level to show signs of weakness again as we continue to see a lot of choppiness and noisy trading just under a big figure. The market rallying from here is a real possibility, with the market seemingly not wanting to break down, but we also have to worry about interest rates out there rising because rising interest rates typically work against silver. We have seen that play out here over the last couple of months.
Rising Interest Rates and Middle East Uncertainty Keep Silver in Stasis
The market remains one that I think is in a bit of stasis at the moment. We just do not really know what to do, and why would we? The situation in the Middle East does not seem to be getting any better, and of course we have to consider that interest rates are extraordinarily high; that typically works against silver, as I said, but the market is trying to adjust to a new normal.
The $50 level below was an area that has been important multiple times in the past. There should be a ton of market memory there, all things being equal, and with that being the case, I think we need to be very cautious with this market. Position size will be crucial, as it typically is in a volatile market like this. Longer term, I do like silver, but right now I think we are just kind of hanging out here and waiting for some clarity for once. At this point, it’s a tricky situation.
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