Well silver bugs, after hitting a 12-year high slightly below $35.00 on Tuesday silver markets have reversed and the upside rally paused as US Treasury yields have extended its upside.
10-year US Treasury yields jump to near 4.24% as investors expect the Federal Reserve (Fed) to follow a gradual policy-easing cycle. Historically, higher yields on interest-bearing assets increase the opportunity cost of holding an investment in non-yielding assets, such as Silver. The US Dollar (USD), which tracks the Greenback’s value against six major currencies, revisits the August high of 104.45.
Don't fear readers the upside trend remains intact due to multiple catalysts. From growing United States (US) political uncertainty to escalating Middle East tensions, every catalyst is acting as a tailwind for the Silver price.
On the politics side, Vice President Kamala Harris leads by a slight margin against former President Donald Trump. Market worry that Trump’s victory could result in higher tariffs and lower taxes, which could force the Fed to return to the restrictive policy stance for a period of time.
For you technical traders, the key resistance of $35.00 remains. The upward-sloping 20-day Exponential Moving Averages (EMAs) near $32.15 signal more upside ahead. The short term 14-day Relative Strength Index (RSI) oscillates above 60.00, points to an active bullish momentum so I would not expect the rally to stop anytime soon. I like $50 price point which is when I'd sell off some of my stack ad I could recoup my initial investment at those levels.