Silver continues to chop around, as we are now testing the 50-day EMA.
Silver
Silver continues to be very noisy in general as the amount of chop is directly in relation to the amount of noise coming from multiple places. The first one of course would be the geopolitical scenario that we find ourselves in. Then of course you have to pay close attention to the 10-year yields in the United States which are currently above 4.3%, which is kind of a flip switch if you will for risk appetite in metals from what I have observed.
Right now, we are at 4.327%. With that, I think the situation works against silver in general due to the fact that silver is a non-yielding asset. That being said, I think the longer-term outlook here for silver is going to be trying to substantiate the $70 level as a floor in the market.
The floor in the market would continue to be defended but probably spongy if you will. I have seen the market break down below there a couple of times, so it is a bit of a fight.
Long-Term Support and Resistance Levels
Really what we need is some type of resolution to the bond market with the rates jumping. I really don't think we get that until we get beyond the war. So as long as the war goes on, it will be a bit of a drag for silver.
That being said, we can rally and probably will relatively soon, testing the 50-day EMA. The 50-day EMA is an indicator that I think plays a big part in where we go next. If we can capture that, then 80 could be your target.
Longer term, I believe we are trying to substantiate the $70 level as the floor and the $90 level as the ceiling. We'll just have to wait and see how that plays out. This is a market that I think you need to be very cautious with your position size because quite frankly headlines could throw it into disarray.