Silver Breaks Through $67 as Inflation Pressure Eases

The Silver market has been on an upward trajectory after the Fed's rate hike failed to keep it down. The metal broke through the $67 barrier, and its support at the 50% level of $65.32 was established earlier today. This sets up a rally to the next 50% level of $66.97, which, if overtaken, puts the main top at $68.33 in play.

The near-term bias has shifted to the upside with the minor trend now pointing up and Silver trading above the 50% levels. The main top at $68.33 is a crucial level that, if broken, flips the main trend to up and turns this week's counter-trend rally into something the bears have to respect as a potential trend change.

However, the breakout holds depends on whether crude stays below Tuesday's highs and whether the 10-year yield keeps drifting away from 5%. A reversal in either one puts the inflation argument back in front of the Fed and takes the relief trade away from Silver fast. Sellers will try to defend the $68.33 level because losing it opens the upside in a way that a $67 breakout alone does not.