We continue to see the world worry about energy inflation, and while silver demand is going to be extraordinarily high, the reality is if you are an asset manager, you get a strong yield on bonds instead of risking the volatility of silver. That will continue to be a problem as long as we are pricing in the idea of energy inflation or something to that effect.
Silver Technical Outlook
If the market were to break down from here, the $70 level is a pretty significant floor, and I think a lot of people will be watching that for signs of buying pressure again. At this point, it remains crucial for the bulls in the silver pits.
Ultimately, we are dancing around the 50-day EMA, and that in and of itself could cause quite a bit of choppiness. If we can break above the $80 level, that could open up the possibility of a move to the $90 level, but I think we really need some type of relief in the 10-year yield and other bond markets, of course, in order to make that happen. So, make sure you watch both markets at present.
