The silver market has seen quite a bit of volatility over the last several weeks, and unfortunately, I don’t think this changes anytime soon.
Silver
The silver market has seen quite a bit of volatility as of late and of course Monday won't be any different with the market pulling back from the 50-day EMA. That being said, the biggest problem that silver has to deal with at the moment is the fact that the 10-year yield is sitting above the 4.41% level currently, which is extraordinarily high. That is toxic for silver, so it'll be interesting to see if it can stay afloat.
That being said, $70 does seem to be significant support and does seem to really bring some type of buying pressure into the market. As long as we can stay above that level, you could see a situation where the market just continues to reward those who are willing to jump in and buy.
Key Support Levels and Technical Indicators
Overall, I think this is a market that eventually, if we can break above the 50-day EMA, opens up the possibility of a drive towards the $80 level. The $80 level of course is a large, round, psychologically significant figure and of course an area where we've seen both support and resistance previously. If we can break above there, then it opens up the possibility of the market reaching $90.
If we were somehow break below the $70 level on a daily close, then you could see this market challenge the crucial 200-day EMA. With that being said, I think this is a situation where traders will continue to watch the 10-year yield as well as others to see what they're doing in order to make their decision on silver as it is a non-yielding asset.
I think we're basically in a bit of consolidation at the moment as the world tries to figure out exactly what is happening in the Middle East.