Silver continues to see a lot of noise at the moment, as interest rates continue to hamper things, and we are looking to figure out where inflation is taking us.
Silver
The silver market rallied a bit during the trading session on Monday as we bounced from the crucial $55 level. This is an area that I have been watching for some time now, as the markets continue to watch inflationary headwinds take hold at times.
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That being said, the market continues to see a lot of back-and-forth action between the $55 and $60 levels. Ultimately, this is a market that has been moving with what rates are doing. Rates have rallied a little bit during the session, so we gave back some of that initial enthusiasm.
Longer-term, silver is looking to be in demand
Silver demand over the longer term should remain somewhat healthy. Of course, inflation is still a major problem in the United States. Silver demand over the longer term should remain somewhat healthy, but that does not mean that it happens easily or quickly.
In general, I like the idea of buying short-term dips as long as we can stay above $55. If we were to break below the $55 level, then silver could drop a bit from there. Ultimately, this is a market that I think is going to continue to see a lot of back-and-forth action.
I think if we do finally get some decision in the rates scenario in America, that will make the big difference. Ultimately, breaking above $62 changes my outlook in general. As long as we have rates falling, if we break down below $55, that also changes my outlook. I think at that point, you could be looking at another $10 drop if rates really take off at that juncture.
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