Silver Bounces Amidst Conflicting Headlines

NEW YORK (March 23) The silver market initially fell apart during the early hours here on Monday but turned around and showed signs of strength as we are seeing a bit of a turnaround in some of the rhetoric coming out of the Middle East. Donald Trump suggested that the weekend had a nice set of talks and a productive set of talks between the Americans and the Iranians, but we’ve already seen the Iranians walk that back a bit, saying more to the effect that the Trump administration backed down after a stern warning.

A Wet Blanket on Price Action

This is a situation where the market is probably going to be thrown around by the latest headlines and with interest rates in the United States on the 10-year at 4.43% during the morning that really puts a wet blanket on top of price action when it comes to silver as you get paid to hold paper and you don’t have to pay the storage cost of silver.

We did bounce off the 200-day EMA, and that is probably something worth paying attention to, but with the markets moving on emotion more than anything else at the moment, it is very difficult to get overly bullish. I still think this is probably a fade of the rally market sooner or later, as silver has just been hammered over the last couple of months after that impressive shot straight up in the air.

That should not be a huge surprise, though, because quite frankly, markets cannot go in a straight line forever. I do think we probably get a bit of a bounce here, but I believe it will be very difficult to get above the $80 level, assuming we get anywhere near there.

FXEmpire