Silver Continues to See Volatility

Silver markets have pulled back from the 200 day EMA again during the Tuesday trading session to reach down towards the lows of the Monday session. This of course is a very negative turn of events, but it is not a complete breakdown. At this point time, is very likely that the market will simply wait for the Federal Reserve statement and/or decision, as a lot of people are concerned about the Federal Reserve raising interest rates and of course working off its balance sheet. Because of this, it is very likely that we will continue to see noisy behavior in not only precious metals, but those markets that are sensitive to the US dollar in general.

SILVER Video 26.01.22

It is worth noting that we have been grinding lower, but it seems as if we are very much stuck in some type of trading range longer term. At this point, if we break down below the lows of the last 48 hours, we could very well see continued selling pressure. That does not necessarily mean some type of meltdown, but it does suggest that we could go looking towards the 50 day EMA which currently sits at the $23.25 region. Ultimately, this is a market that will probably continue to be very noisy, which should not be a huge surprise due to the volatility that this market typically sees.

Furthermore, as the entire world is concerned about raising rates and of course monetary tightening in general. That does cause a lot of ripples through the market, not just here but much everywhere. I expect a lot of noisy behavior between now and the announcement, and quite frankly I think the most important thing to pay attention to is how we close on Wednesday.

For a look at all of today’s economic events, check out our economic calendar.