Silver Markets Continue to Threaten Major Resistance Barrier

Silver markets have paused at the $25.50 level, which is an area that we have seen a lot of noise at previously. This is an area that could cause quite a few problems, and quite frankly would not be surprised at all to see this market pullback. Because of this, I think is probably just a matter of time before we see some type of significant drop. Whether or not we can hang on at that point will be the biggest question to ask of silver as it is so highly manipulated market, and we have seen this area because of a lot of problems previously.

SILVER Video 04.03.22

Inflation of course is a major issue at the same time, so be interesting to see whether or not the fear of inflation will drive this market higher and have it break out to the upside. If it does, then we could be looking at a move towards the $27 level. However, if we do not have enough momentum to go higher, then we will probably see this market go to the $25 level initially, perhaps even down to the $24.50 level.

Regardless of what happens next, the markets will continue to be volatile, and that is probably the only thing you can count on. Because of this, the market is more likely than not going to have to be approached with caution, and therefore you need to keep your position size relatively small in comparison to normal trading. You should probably also keep an eye on the US Dollar cap Index, as it has a strong negative correlation.

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