• Silver has drifted a little bit lower during the trading session here on Wednesday as interest rates remain elevated.

• What’s interesting is that the gold market really fell apart, and silver was a little bit more resilient, but I have a theory.

My theory, of course, is that there will be more demand for silver going forward than gold because not only do we have a scenario where interest rates have an influence, but we also have to keep in mind that the amount of supply of silver is nowhere near sufficient to satiate the demand that AI data centers and the electrification of the economy are going to demand.

It’s very similar to the situation copper’s in. I believe at this point in time that silver will fare better than gold, but that doesn’t necessarily mean that it will go higher. Interest rates being elevated the way they are and remaining elevated the way they are due to the concerns of, or in the Middle East and the supply chain, I think, continues to be the biggest headwind here.

I See Support Below

Really at this point in time, if we do continue to drop, I think the $60 level is a fairly strong floor. Nonetheless, I think this is a market that, if we do see rates drop, this will be a natural place for buyers to jump in.

If we were to break to the upside, the 200-day EMA is a short-term ceiling, breaking above that then allows the market to challenge $70. Long-term, I fully anticipate that silver will reach $120 again, but we have a lot of work and a lot of things that have to fall in line. If you’re an investor, this might be an area where you would pick up a little bit of silver. If you’re a trader, you still have to see this as a bearish market.

Ready to trade our daily forex analysis and predictions? Here are the best Silver trading brokers to choose from.

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