Silver Weelky Price Analysis – Silver Attempting Recovery

Silver Markets Weekly Technical Analysis

The silver market has been a little positive over the last couple of weeks and this past week, although shortened, showed more of that attempt to turn things around. Most of what we’re seeing now comes down to the interest rate situation as traders continue to pay close attention to the 10-year.

The 10-year yield in the United States is a major signal for what the risk appetite around the world will be. 4.30% continues to be a major flip signal. If interest rates go above 4.30%, the silver market tends to struggle. The market, seeing lower interest rates, however, allows non-yielding assets such as silver to do a little bit better.

Interest Rates and Technical Support

Ultimately, I think this is a situation where we are trying to hold the line here at around the $70 level, which is an area that has been important multiple times. We did give back some of the gains this week, so I think what this tells us is longer-term traders are going to have some issues.

Quite frankly, silver is going to be hard to hold longer term anyway, with all of the volatility in the headlines out there driving the interest rates all over the place. While I am constructive of silver, I would make this a very small position at this point.

If we break down below $70 again, look at $68 as potential support. Longer-term, I’m of the thought here that we will try to find that range again between $70 on the bottom and $90 on the top, but we need to get the bond markets under control first.

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