Silver has fallen a bit during the trading session as the 50-day EMA continues to offer resistance on Wednesday.
Ultimately, this is a market that I think given enough time probably goes back and forth between the $70 level below and the $80 level above.
This is a market that has an even larger consolidation area between $70 and $90, but currently we are tightening up. And that makes a bit of sense considering that this is a market that is starting to really try to determine whether or not we will be held hostage by events in the Middle East still, or are we going to finally start to focus on the supply and demand situation.
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After all, there is nowhere near enough supply for the demand of silver out there, but with interest rates being tighter than usual, that does put a little bit of a dampening effect on rallies in this market. Once the Middle Eastern situation is settled, I expect that silver will be very bullish, but in the short term, expect a lot of choppy back and forth behavior.
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I think it's very difficult to expect this market to suddenly rip in one direction or the other. But if it did, you'd almost see some type of story being told in the 10-year yield. As things stand right now, I think we've dipped enough that perhaps there will be buyers willing to come in and try to pick up a little bit of silver as we bounce around. I'm not overly bullish, I'm not overly bearish, I'm very neutral at the moment.
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