Silver continues to see buyers, as we are now threatening the $90 level, which has been a massive ceiling recently.
Because of this, trouble could be ahead.
Silver has rallied a bit during the early hours on Wednesday as we are now approaching the $90 level. The $90 level of course is an area that a lot of people will be watching closely as it is a large round psychologically significant figure.
But it's also worth noting that the 10-year yield in America is trying to get to 4.5%. That's extraordinarily high. So sooner or later one would have to think it comes into the picture to cause chaos.
Resistance and Pullback Potential
Overall, this is a market that I think does see a bit of a barrier just above and I think breaking above there would be a bit of a challenge. We could go looking to the $95 level, but I would not hold my breath for that.
With this being the case, I am cautiously optimistic longer term, but I do expect to see some type of pullback that could go looking into the $80 level. The $80 level of course right now serves as a bit of fair value or a midpoint if you will in the consolidation area that we are stuck in.
Top Regulated Brokers
The $70 level of course is an area that is very important as it offers massive support. So, if we were to fall towards that area I'd be looking to buy value, but I don't think we're anywhere near it right now and in fact I think $80 could be your short-term floor. I have no interest in shorting silver, but I don't want to chase it all the way up here either. So, with that a little bit of value probably goes a long way.
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