Silver continues to be very volatile, but as rates drifted a little lower on Tuesday, the silver market took advantage of it.
Silver
The silver market has shown itself to be a little bit bullish during the trading session here on Tuesday as we see a lot of questions asked about interest rates as they do drift a little bit lower.
That does help silver, but really at the end of the day, I think you have to look at this as a market that is going to continue to be very noisy in general. I do think it is probably only a matter of time before traders have to look at this and determine whether or not the extraordinarily high rates are going to cause an issue or if we are in fact looking at a market that is going to ignore the bond market.
Now, we have drifted a little bit lower during the session here on Tuesday as far as interest rates are concerned and if those rates continue to collapse, that obviously is good for silver. But in the big scheme of things, rates are still pretty high and that does cause some pause for silver bulls.
TECHNICAL LEVELS AND MARKET OUTLOOK
If we break out to the upside, the 50-day EMA will be targeted, and then after that, we will be looking at the $80 level. If rates suddenly spike, then we are looking at a pullback toward the $70 level.
The $70 level of course has been important; it is a large, round, psychologically significant figure and of course will attract a lot of attention for potential value hunters.
We will just have to wait and see how this plays out, but as things look right now, it certainly seems as if the silver market is consolidating with more of a buy on the dip type of attitude.