Silver Market Sees Noise Ahead of NFP Report
The silver market is currently experiencing noise due to the interest rate situation, which is having a significant influence on it. The market is waiting for the Non-Farm Payrolls report on Friday, and this uncertainty is causing some hesitation in the short term.
According to Christopher Lewis, a technical analyst at DailyForex, there is 'a little bit of noise around the $60 level here in the futures market.' This suggests that if silver bounces from this level, it could open up the possibility of a rally. However, Lewis cautions that between now and the jobs report tomorrow, it's difficult to get aggressive.
Lewis notes that interest rates being all over the place have a major influence on silver, adding fuel to concerns about energy inflation. He also mentions that if bond rates start falling, silver is likely one of the first places to put money to work, possibly for a run to the 50-day EMA or as a longer-term buy-and-hold.
If silver drops below $60, the next major support level is likely closer to $55. Lewis' advice is to wait and see how the market reacts before making any moves.