Technical analysis of the silver markets
The silver market recovered slightly in the early hours of Thursday, but is still below the crucial $30 level. With this, I think it is clear that the $30 level, based on previous actions, will remain crucial. With this, I think if we can overcome the $30.50 cents level, we have a real chance of recovery. However, interest rates in America continue to rise, and that is obviously a big problem.
In this higher interest rate environment, it’s hard for silver to really take off because you’re getting paid to hold paper instead of real silver. Silver is of course an industrial metal. So the idea, of course, is that if financial conditions are tight, there will be less demand for industrial metals. Whether that is true remains to be seen. But the technical analysis cannot be ignored in this market because although we have left the 200 day EMA behind us, the $30 level is an area that has been important.