Silver Getting Ready for Volatility

Precious metals have been consolidating recently and silver has been no exception, with volatility being very small over the last couple of days. It was trading slightly higher on Tuesday and was seen hovering around 14.25 USD.

However, usually after a period of low volatility we would expect a period of vast volatility. Bulls may, therefore, find it very difficult to push silver above the two strong resistances at 14.35 USD and 14.45 USD. Also, as long as the price remains below these levels, the outlook appears bearish. A breakage above 14.45 USD could make this view obsolete, with the next target at 14.60 USD.

On the other hand, if silver drops below the short-term upward trend line, the current bullish wave could end and the next target for bears could be around 14.15 USD. This means the recent period of consolidation might be over, suggesting a continuation of the long-term bearish trend.

US yields continue to rise to new cycle highs, which is in favour of the US Dollar and precious metals tend to be weak in times of rising yields. Should this continue, silver may decline below the key 14 USD level in the near future.

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