Silver Weekly Price Analysis – Silver Tests Pivotal $60 Resistance as Interest Rates Rise

Silver Technical Analysis

The silver market rallied during the trading week to break above the $60 level at one point in time, but as we head into the weekend, it looks like $60 is going to continue to be important. With that being the case, I think you have to look at this through the prism of a market that has a lot of decisions to make here, and a market that, quite frankly, will remain noisy and concerned about the idea of interest rates being higher than usual. As interest rates climb, typically that will put downward pressure on silver, and that is something worth keeping an eye on.

Key Market Levels

If the market can break sustainably above $60, that would be a big victory. The 50-week EMA currently sits at $63.68, but pay close attention to the last couple of candlesticks right around $55. We’ve seen support there, so if that were to give way, that would obviously be a technically bearish signal. If that happens, we could see other assets moving as well, as it would be a decidedly “risk-off” signal.

The next major support level on long-term charts is found down at $50. Silver is very cognizant of the importance of the $60 level right now, so as long as it continues to react to that area, I think we have to pay close attention to this market and interest rate correlation, as it is pretty strong. This will continue to be a noisy market, to say the least, as silver is more volatile than most assets.

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