The silver market gapped lower during the early part of the trading session on Tuesday, but then turned around to show signs of life.
That being said, it might be worth noting that interest rates in the United States continue to climb, and that is a major factor in what is going on. While silver was trying to recover, it still has a lot of headwinds, and I suspect that the upside might be somewhat limited between now and the jobs report.
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That could be something that if it comes out hotter than anticipated
We get the core PCE numbers coming out on Wednesday, and that is the Federal Reserve's favorite indicator of inflation, or at least typically is. That could be something that, if it comes out hotter than anticipated, rates may rise, working against the value of silver. On the other hand, if it comes out weaker than anticipated, that could send silver higher.
But we have the specter of the jobs report on Friday, so I think the upside, like I said, is somewhat limited to about $65, where the 50-day EMA and the 200-day EMA indicators both reside. Anything below $60 would be negative, but there is a lot of noise down there and one would think a lot of orders.
So, at this point, a little bit of a relief rally makes some sense. Other than that, I do not know that the upside has legs at this point. We need to get through that jobs report to really get a read on what silver may do.
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