Silver is trading above $25.00 in late hours. The sharp sell-off sparked by rising rates has silver on the defensive. Some good news is that the sharp sell-off was met by a “bargain hunting buy” leaving chart pattern suggesting sideways to higher price action. The dollar index’s strength hasn’t deterred silver from holding this morning’s gain above its psychological level of $25.00. I think there is a strong sentiment among traders that excess liquidity could be a catalyst for inflation. The reality is that rates have been rising to mitigate potential inflation risk. Silver is in desperate need of some bullish news to sustain more upside potential.
From the technical perspective, attached is a continuation weekly Silver chart. As I said a couple of weeks ago, “Silver will trade above $30.00 again before it trades below $20.00. Near term, Silver could pop above $26.50, and traded below $25.00 could trigger a wave near $24.00 “, which was met.