The silver market initially fell during the early part of the trading session on Thursday, as we had initially fell pretty significantly only to turn around and show signs of life.
All things being equal, the market is looking very much like it's going to try to form a hammer for the day, which is a positive sign, and it's worth noting that we had dipped below support but then turned around to show signs of life.
That tells me that there is plenty of demand underneath. Interest rates dropping later in the day have certainly helped, and I think that this market keeps in a very similar pattern than we've seen for a while in the sense that traders are looking at this through the prism of an interest rate situation.
Interest Rates and Geopolitical Influence
As rates drop, it does help the silver market as it's a non-yielding asset, but rates, unfortunately, are being held hostage by the Middle East and all of the things are going on there. The fact that we just don't have any real clarity, I think, will continue to keep silver somewhat tight.
Top Regulated Brokers
So, despite the fact that we have rallied after selling, I think we have to understand that there's probably somewhat limited upside. It would not surprise me at all to stay in a range between $70 on the bottom and $80 on the top. If we can break the $80 level, that would obviously be extraordinarily positive, but right now, I'm not looking for that. I'm just looking for a return to the 50-day EMA, which seems like a magnet for price.
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