• Silver has fallen during trading here on Wednesday as we continue to see a lot of back-and-forth action.
• Quite frankly, this is a market that is going to continue to pay close attention to interest rates.
• And unfortunately, interest rates remain stubbornly high and that, of course, works against the value of silver.

If silver price were to fall from here, the market could go looking to the $70 level. I think that would be an area that a lot of people would be very interested in.

With this being the case, I am watching this market very closely. It is a market that has been very choppy and sideways for a while now as we just do not have any clear direction. I think $70 and $80 both are important levels that people will pay close attention to in this environment.

Interest Rates and Geopolitical Drivers

I also recognize that you have a situation where the Middle East is really what’s driving everything as traders are trying to sort out whether or not the supply chain reopens because we have issues with energy inflation being a real threat. And if that’s going to be the case, then interest rates will remain higher for longer and that’s just kind of weird feedback loop we’re in.

So, with that being said, I think we basically stay where we’re at, I’m not looking for any big moves. But if we were to break above the $80 level and rates start to drop, I think that’d be a sign that maybe we’re changing regimes, we could go looking at the $90 level.

Long term, I am very positive on silver. There is a massive amount of demand and there is nowhere near enough supply, but at the same time, it’s worth noting that it is a non-yielding asset. So, what I mean by that is we continue to see high rates really work against it. I like buying dips, but I wouldn’t put a lot into this market, at least not right now.

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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire