Silver Price Forecast – Silver Markets Pull Back Again
Silver markets have pulled back a bit during the trading session on Monday as traders came back to work, sending the market below $25 again. Ultimately though, I do think that this is a market that continues to see a lot of noise in general, as we have seen interest rates in the United States rise. That of course works against the value of precious metals in general, and that has its influence on silver. It is much more damaging to gold, as silver is an industrial metal, but it is part of the equation.
SILVER Video 13.04.21
As silver is priced in US dollars, that will weigh upon where we go. That being said, there is also the “hopium” component of the trade, meaning that people are looking at the potential of industrial demand picking up in that catches a lot of interest. This is why silver will outperform gold in the current environment, but that does not necessarily mean that it is something that you should be a huge buyer of. I think at this point in time it is very likely that what we will see is a pullback towards the 200 day EMA, and perhaps another attempt to stabilize silver at that point in time. All things being equal, I think that eventually silver does get a huge bid but right now it is difficult to get overly excited about it, at least in the environment that we find ourselves in. Ultimately, if we get a daily close above the red 50 day EMA on the chart, then I might be convinced to start buying. Until then I am a little bit cautious in this type of trading environment.
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This article was originally posted on FX Empire
