Silver has been sold hard on Thursday, only to bounce back again as rates started to cool off.
Silver's gotten hammered during the session on Thursday as we continue to see the $70 level as a bit of a magnet for price. That being said, we have bounced quite nicely from there, which does make a certain amount of sense considering that this was all driven by interest rates which are now, as I record this video, trying to drive down the 10-year below the 4.3% level. That would be a very positive thing for silver.
Furthermore, I don't know that anything has structurally changed. This was all based on a speech that Trump gave that was literally the same thing he's been saying for 3 days. I guess there were a lot of people out there looking for him to call the war off and go home, I guess. I don't understand it myself and it shows the general fear and unsteadiness of Asian traders.
Technical Range and Market Outlook
With that being the case, it does look like we are trying to recover quite nicely and stay within the boundaries of the range-bound market that we had been in for some time. $70 is your floor in this environment with $90 your ceiling. As I watch XAG/USD short-term charts right now, it does look like precious metals really want to take off to the upside and it would not surprise me at all if we got somewhere fairly close to the open before this is said and done.
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Keep in mind Friday is Good Friday, meaning futures markets are going to close early, so this is basically it heading into the weekend. I remain neutral in this market but we're at the bottom of range, so in the short term I suppose a bounce makes a lot of sense.
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