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Silver Markets Cannot Hold Gains

By:
Christopher Lewis
Published: Feb 2, 2022, 16:16 UTC

Silver markets have rallied again during the trading session on Wednesday but have given up gains very much in the same manner that they have during the previous session.

Silver Markets Cannot Hold Gains

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Silver markets continue to struggle to hang on to gains as we have seen a lot of volatility in this market. As we have seen the last couple of days, the buyer simply cannot hang on to the gains going forward, and therefore it is very likely we will continue to see negative pressure. With that being the case, it is likely that we could go back towards the $22 level to retest that support region. Keep in mind that support region extends all the way down to the $21.50 level, so we could have quite a bit of a fight on our hands.

SILVER Video 03.02.22

Keep in mind there is a negative correlation between the US dollar and silver, so pay close attention to the US Dollar Index. If the US dollar starts to fall, that could give a little bit of hope for silver, but quite frankly silver continues to make lower highs, so it does suggest that eventually we could have a bit of a breakdown. If we can break down below the $21.50 level, silver is going to get absolutely crushed, perhaps reaching towards the $20 level.

On the other hand, if we can break out above the highs of the last couple of sessions, perhaps even the 50 day EMA, then silver could make a move towards the 200 day EMA. That being said, things do not look very good at the moment for the silver markets, and of course you should also keep in mind that silver is not only a precious metal, but it is also an industrial metal and people are worried about growth going forward.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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