Silver continues to see a lot of noise, as the interest rate markets continue to be a major driver of where we go.
At this point, the 200 Day EMA continues to be in focus as well for technical traders.
Silver initially fell during the trading session as you would have expected on Monday with the renewed hostilities between Iran and Israel. But that being said, we have since seen the market turn around on Monday, as traders continue to watch the correlation between bonds and metals.
I think mainly due to the fact that it does not look like the United States is willing to get involved. And if that is the case, it is possible that we could see a situation where the market will perhaps try to rally a bit in the silver market as the interest rates start to fall a bit. This could be a big help going forward in this asset.
Market Outlook
Ultimately, this is a market that is watching the 200-day EMA very closely as well as it is a moving average that traders watch to determine the trend. So, with all of that being said, I think we have got a scenario where, if rates drop and we bounce from the 200-day EMA, recapturing the $70 level is probably an opportunity to go looking towards the $73.50 level. If we break down below the bottom of the candlestick for the trading session on Monday, then we could drift towards the $60 level.
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All things being equal, I think this is a market that continues to be somewhat noisy and held hostage by interest rates, so watch the 10-year yield in America, and of course the $70 level, as it has a lot of “market memory” at it.
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