Silver continues to be held hostage by the latest moves in the bond markets, as rates remain a major factor in pricing, and more specifically, risk appetite.
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Silver Remains Range-Bound as Bond Markets Drive Price Action
Silver continues to be noisy during the trading session on Monday as we are watching interest rate markets very closely and quite frankly, the interest rate market will be watching the headlines coming out of the Middle East and needless to say on Monday they got a little bit more dire in the sense that the Iranians are talking about closing the Strait of Hormuz again.
With this, I think there are a lot of traders that are a bit hesitant to really put a huge put of big amount of money into the market. With the 50-day EMA above also offering resistance right along with the $80 level.
Support and Resistance Levels
If we can break above the $80 level, then it opens up the possibility of a move to the $90 level, but with this, I believe that we also have just as resilient support underneath near the $70 level.
With that being the case, I think we have a scenario where value hunters continue to look for the possibility of finding cheap silver, which of course I believe longer term we will see silver really take off to the upside as the supply just does not match the demand. If we can continue to break to the upside given enough time I do think we will not only hit the $90 level, but I think we will go even higher than that.
A drop from here I think would be mainly due to higher interest rates in America, probably markedly so, probably a spike in interest rates. Until we see that, I think we generally stay in a range waiting for some relief.
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