Silver continues to see a lot of reaction to the rates in the US, as they are still far too strong for metals to do well, and silver itself is very sensitive to this issue at the moment.
Silver
Silver continues to be very noisy on Monday as the interest rate markets of course are going to be driving anything and everything you look at.
Silver happens to be particularly sensitive to the interest rate markets and therefore we will have to keep an eye on the 10-year yield as an example as it has hit 4.4 recently. It continues to weigh on the market. Silver happens to be near the $70 level which of course is a large round psychologically significant figure and an area that I think a lot of people will be paying close attention to.
With this, I am somewhat ambivalent about this market right now. We are not only at a large, round, psychologically significant figure, but we are between the 200-day EMA underneath and the 50-day EMA above. In other words, we're in an area where you would expect to see a lot of push and pull.
If 10 Year Yield Drops, We are in Business
I do think that if the 10-year yield drops, it does provide a little bit of momentum for silver, but we'll just have to wait and see whether or not that actually happens. Ultimately, short-term back and forth trading is probably what you can expect here but keep an eye on that 10-year yield. If it starts to fall, that could make silver attractive at least for a short-term trade. I wouldn't look for a big one coming out of this. Over the longer term, it's hard to tell what happens. I think we need an end to the Middle East conflict to even begin to contemplate a serious recovery.