Silver has found buyers on the latest dip for Monday, as we continue to see a lot of interest.
SILVER
Silver initially fell during the trading session but has seen a little bit of support just below the $80 level. The $80 level of course is a large, round, psychologically significant figure and an area that I think a lot of people will be watching very closely.
The fact that we have fallen through the 50-day EMA, and the $80 level does suggest that perhaps we are in fact starting to see a little bit of hesitation. But the bounce that we saw during the trading session on Monday could in general turn this thing around by forming a hammer and maybe getting a little bit of FOMO coming into the market.
TECHNICAL LEVELS AND MARKET DRIVERS
The US dollar softened a bit later in the session and that has helped silver. The market breaking above the 50-day EMA could open up the possibility of a move to the $90 level. If we were to break down below the candlestick for the trading session on Monday, then we could see this market dropping down to the $75 level.
All things being equal, I think there is a floor in this market closer to the $70 level. So as long as we can stay above the $70 level, it is very likely that the market will continue to see plenty of buyers out there.
I think longer term this is a market that is positive in general, but it has to work against a strengthening US dollar at the same time. Furthermore, it is not gold. It is not a safety metal. It has more to do with AI and supply and demand, which of course is a bit strained at the moment. But after that huge wipeout several weeks ago, I think it makes sense that the market just simply treads water.