The silver markets were very choppy in Monday’s trading session and even tried to break higher. That said, the $ 23 level was once again a hindrance. At the end of the day, silver is a little different from gold, if only because it’s a tighter market. While the strengthening or weakening of the US dollar certainly has an influence on our next step, the reality is that right now this is a market that continues to be weighed down by rates. interest and the greenback.
SILVER Video 05.10.21
Also, we have to worry about industrial demand because quite frankly something is wrong in this market due to the fact that while many commodities have been in massive demand, they have not. just not followed suit. In this environment, if we were to break through the $ 22 level again, I think it is very likely that we will continue to decline, possibly opening a decline to the $ 20 level. On the other hand, if we were to reverse a breakout above the $ 23 level, then there is a possibility that we will look to the 50-day EMA, maybe even the $ 24 level.
At this point, I think it’s really only when we break through the $ 24 level that it’s possible to get long in this market with a decent size. At this point, that doesn’t seem very likely, and of course we’ll have to pay close attention to bond yields in America, because quite frankly if you can earn a yield by holding paper instead of storing money, that in itself might be right to bring down this market.
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This article originally appeared on FX Empire