Silver has gotten hit hard on Thursday as the ten-year yield in America jumped above 4.30% at one point.
Silver has gotten absolutely crushed during trading on Thursday dropping well over 11% at one point as we violated the crucial $70 level. It is worth noting that I have seen the interest rates in America skyrocket and if that is going to continue to be a persistent thing, that will be a very big problem for silver. Silver of course is highly sensitive to interest rates and by extension the US dollar, so we will have to watch that story.
I suspect the best way to deal with silver during the session is probably going to be waiting to see whether or not we can close above the $70 level. If we can, and the 10-year yield stays well below the 4.3% level, then you might have a shot at silver bouncing a bit.
Silver Resilience and Technical Levels
I would categorize this as maybe testing the bottom of a larger consolidation area. I wouldn't look at it as a sign that gives you the all clear that silver is suddenly going to race higher, but it does seem somewhat resilient all things considered.
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If the interest rates in America continue to climb, I don't see any reason why silver doesn't touch the 200-day EMA, possibly even the $50 level by the time it is all said and done. We are in a massive state of flux. Interest rates need to be held under control; if they are not, then the metals get whacked first. Even if there is a geopolitical problem—and let's face it, there probably will be, silver won't be the answer, it will be gold, so keep an eye on that as well. I am looking to buy the dip assuming there is a reason to.
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