Silver market has fallen rather hard during the trading session on Thursday, as we reached all the way down to the $22 level as interest rates in the United States continue to climb. A strengthening US dollar and of course strengthening interest rates does serious damage to metals, especially silver which is especially for gold to begin with. Because of this, I think that the market will more than likely continue to see downward pressure. Whether or not the $22 level can hold is a completely different question, because it is an important area from a technical analysis standpoint, and of course the fact that the market is attracted to these big figures anyway.
SILVER Video 07.01.22
If we do turnaround from here, it could have the market racing another $0.50 to the upside, but quite frankly silver is so fickle it is really difficult to get overly excited about it. If we do get a move to the upside, the most obvious area of significant resistance is right around the $23 level, so we may be trying to carve out a little bit of a range, but it should also be noted that the true support has been found a little closer to the $21.50 level. This is a market that I think eventually will have to make up its mind from a longer-term standpoint, so keep that in mind. The silver market is very sensitive to the latest hint of industrial demand, so that also makes a little bit different than investing in gold. All things been equal, there is a huge negative correlation between the US Dollar Index and silver, so pay attention to that as well.
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This article was originally posted on FX Empire
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