Silver markets initially fell during the trading session on Wednesday as there was a lot of volatility heading into the CPI numbers. As the US dollar went back and forth, so did the silver market. All things been equal, we have recovered quite nicely and ended up forming a bit of a hammer. The hammer sits just below the $28 level, which is a major resistance barrier that people are looking to break through. If we can get a daily close above the $20 level, think at this point in time for traders will go looking towards the $30 level above.
SILVER Video 13.05.21
Silver will be in demand due to the industrial component, as silver is in high demand for the reopening trade. Furthermore, the “new green deal” could have demand for silver skyrocketing. Beyond that, we also have the US dollar coming into play as it has been losing strength for some time. Because of this, I do think it is only a matter of time before the buyers pick things up, and I believe that the 50 day EMA underneath should continue to offer support, as the indicator has been so resilient over the last several weeks and therefore, I think that any time we get a pull back there will be a lot of value hunters looking to get involved in a market that has been very strong for quite some time. In fact, I believe that commodities in general will continue to follow this overall trajectory. The market breaking above the $20 level should open up even more buying pressure in this market.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire