Silver Price Forecast – Silver Continues to Drag

Silver Markets Technical Analysis

The silver market has gone back and forth during the course of the trading session on Tuesday as obviously a lot of people are paying close attention to the liquidity issues. And with that being the case, I think the market is going to see a lot of volatility and choppiness, but I also recognize that it’s going to be difficult to really get things moving with the lack of trading volume. If we can recapture the $30.50 level, at that point in time, I think silver will start to look fairly strong again, but it will take some effort at that point.

On the other hand, if we break down below the $28.50 level, it’s likely that this market drops towards $27. Keep in mind that interest rates in America continue to climb despite the fact that the Federal Reserve is cutting rates in America. So, I think you’ve got a situation where you just have to be cognizant of the fact that the 10-year yield is a major factor in what happens next.

With that, if yields drop that could help silver so make sure that not only do you have the move to the upside on the charts, but you also have those rates dropping in America because that will give you a little bit of added confirmation in a resumption of the uptrend. Of course, the exact opposite would be true if rates start to climb, and silver starts to drop could be pretty bad for silver overall.

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