XAG/USD Forecast Today 05/06: Price Rallies (Video&Chart)

(MENAFN- Daily Forex)

The silver market rallied a bit during the early part of the trading session on Thursday as the interest rate market has pulled back just a touch in the United States. Rates dropping of course does help silver but all things being equal this is a market that will continue to see a lot of back-and-forth behavior, and I also recognize that this is a market that is bouncing around between the $70 level underneath and the $80 level above.

It's worth noting that the 50-day EMA is also sitting right at the $77.25 level offering a little bit of a short-term barrier as well. That being said one of the biggest problems that the silver market will have is that the bond market will probably be very quiet as well mainly due to the fact that we have the jobs number in America coming out on Friday Market Awaits Jobs Numbers

That should continue to be a major issue, and I think all things being equal we probably are waiting to see how the bond market reacts to the jobs numbers because of course it will have such a major influence on a non-yielding asset such as silver.

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Ultimately this is a market that I think will continue to be noisy but if we can break out of this $10 range it opens up the possibility of a move to the $90 level or possibly the $60 level based on a breakout. As things stand right now though we're just held hostage by the bond market which of course continues to watch the Middle East and tomorrow we'll be watching jobs.

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