Silver Weekly Price Forecast – Silver Grinds Sideways as We Wait for Rate Relief

Silver Technical Analysis

The silver market has seen quite a bit of sideways action during the course of the week, as the $60 level continues to be a bit of a support level. The support level is more or less the top of a demand zone that extends all the way down to the $55 level, an area that we can see on the weekly chart that caused the latest bounce.

The problem, though, technically speaking, is that each rally is a little lower as far as the peak is concerned. We will have to wait and see how that plays out. As things stand at the moment, it is all about interest rates.

Interest Rates Did Drift a Little Lower This Week

Interest rates did drift a little lower this week. They were at 5.35% on the 10-year yield in America. As I record the video, we are at 5.231%, providing a little bit of relief. We need to see some type of continuation of this to give silver a real shot to go to the upside.

If we continue to grind lower from here, underneath the $55 level would be a very negative turn of events. That being said, I think we are in an area that will be very choppy and very noisy.

With interest rates rallying due to energy, that is our biggest problem. Non-yielding assets do not do well with high rates most of the time. Unfortunately, rates are being driven by energy supply concerns, something that flares up every once in a while due to comments in the marketplace and on the wires.

With the situation in the Middle East still going on, that provides a little bit of a headwind. Right now, though, we are sitting on pretty significant demand.

If you’d like to know more about how to trade gold and silver, please visit our educational area.