The silver market continues to be very noisy on Thursday, as we see a lot of headlines coming out of the Middle East driving where interest rates are going, which in turn will move silver and other metals.
The silver market continues to be very noisy as we have dropped a bit during the trading session on Thursday, piercing the $70 level yet again. That being said, I think you've got a situation where traders are going to be watching to see if we can recapture it any time soon or if we are going to continue to drift lower, perhaps towards the 200-day EMA.
Keep in mind that silver has a lot of problems with higher interest rates and if that ends up being a consistent problem here, silver will fall apart sooner or later. Interest rates are being driven higher by the war, and the nonstop bad news seems that it continues to be a feature of it.
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If the market were to rally from here and take out the high price from the Wednesday session, then we have an opportunity to see this market really start to take off, perhaps reaching towards the 50-day EMA.
I have no interest whatsoever in getting too big in this market. I think an errant headline could cause chaos, probably in either direction. If the war ends, then I anticipate more of a risk appetite returning to markets in general and that should help silver.
But we continue to see every time it rallies there are plenty of people willing to short the market and I think that is the main takeaway here. Not necessarily a collapse, but a continuation of fear will be a problem for silver for the foreseeable future. I am not looking for a big position at this point, as the markets are so jittery.
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