- The silver market had a bit of a drop on Thursday, and it seems like we're trying to figure out where things are going.
- Right now, it's getting close to the bottom of a range it's been in for a while. There's a level at $22.50 below, and we might end up falling down to that level.
- It's clear that silver needed a little break, but it doesn't seem ready to make a move just yet.
If we break below the $22 level, things could get worse, and the market might drop all the way down to $20 if things stay negative. But when you look at the chart, it's clear that we've been going back and forth for a long time. So, it seems like we're just stuck in this range, bouncing around like we have been for several months. This is typical for markets that are trying to build up a position for the fall season, and of course the colder months coming down the road. This is a situation that plays itself out time and time again, every year.
Keep an Eye on Interest Rates
If things turn around, and we go above the top of Thursday's session, we might head back toward the highs. But keep in mind that the $25.50 level has been a big problem for silver, and if we can get past that, maybe we'll aim for $26.50. However, there are some important things to watch. One is the US dollar because silver and the US dollar tend to move in opposite directions. Also, there's the question of industrial demand for silver, especially with talks about the "Green New Deal." Ultimately, I think we'll keep trading in this same range we've been in since May this year. Keep an eye on interest rates too because higher interest rates can hurt the value of metals like silver.
In summary, the silver market had a drop, and it seems like we're trying to figure out where it's going. We might head down to $22.50, but we've been stuck in this back-and-forth range for a while. If we can break above $25.50, things might get better, but we need to watch the US dollar, industrial demand, and interest rates. For now, it looks like we'll keep bouncing around in the same range we've been in for months.
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