Silver has rallied hard on Tuesday, as we are reacting to falling yields in the United States. With war headlines coming out randomly, be careful with your position size.
Silver
Silver has exploded to the upside during the trading session on Tuesday as we have got a couple of different things going on to help the market. This is going to continue to be a volatile market from what I see.
Interest rates in the United States have dropped a bit as we tested the 4.30 level, but it has held so far. We've had words from the Iranians suggesting that they are in fact looking toward the idea of peace, but they need some guarantees. In other words, there’s still plenty of wiggle room to cause chaos in the market and have them walk things back.
Technical Indicators and Support Levels
If the market were to break down below the $70 level, then we could have a situation where we test the 200-day EMA yet again. That’s an area right at $62.60 that will continue to be important from what I can see. With that, I look at this as a market that will find plenty of buyers and buy on the dip type of people as long as there seems to be some type of hope for peace.
That should in theory at least drive the interest rates in America down and that is I would say by far the biggest problem that silver has at the moment. The 50-day EMA being broken to the upside could open up the possibility of a move to the $80 level, which of course is a large round psychologically significant figure in and of itself. Right now, it’s a good start, but we’ll see whether or not the silver market can really take off.