Silver Price Outlook – Silver Continues to See Overhead Pressures

Silver Markets Technical Analysis

The silver market initially did try to rally a bit in the early hours of Monday, but you can see we’re still struggling to find any momentum, and this does make a certain amount of sense as interest rates in America continue to climb despite the fact that the Fed has been cutting. If that’s going to be the case and things are going to get more expensive as far as borrowing is concerned, that has a direct effect on industrial production, industrial metals. Keep in mind, silver is an industrial metal, not just a precious metal.

So, you do have to understand that maybe this trend line break could be the beginning of something new. This breakdown isn’t actually confirmed until we break below the previous low somewhere near the $28.80 level, but it certainly looks like we’re going to try to do that. If we break down below there, then everything points to lower silver prices, probably down to about $26.40 or so.

If we turn around and recapture the $30 level, then silver has a chance to go higher. But really at this point in time, I just don’t see any effort here. Now, having said that, it is the end of the year and liquidity is a bit of an issue. So that might be the one thing that you can look to and say, okay, maybe silver’s all right. It’s just not attracting a lot of inflows. But as I’m saying right now, it needs to prove itself before I buy.

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