By Christopher Lewis Christopher L.
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.
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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Christopher Lewis is a technical analyst and market commentator at DailyForex with more than two decades of trading experience in Forex and other leveraged markets. Based in Columbus, Ohio, he specializes in chart-based analysis of major currency pairs, stock indices, commodities, and energy markets, focusing on clear support and resistance levels, trend structure, and risk management. Christopher produces daily written and video analysis for traders who rely on technical setups to navigate volatile market conditions
As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire
