Silver Markets Fall Towards Major Support

Silver markets have fallen a bit during the course of the trading session on Thursday as it looks like we are heading back towards the $22 support level, which of course extends down to the $21.50 level in a bit of a “support zone.” At this point in time, the market is likely to see a lot of noisy behavior as the support level should cause traders to come back in, but it is worth noting that we continue to see selling pressure every time we rally. Silver of course has a directly negative inverse correlation to the US dollar, and therefore you need to pay close attention to the US Dollar Index. Ultimately, I think silver is in serious trouble, but it could get a bit of a boost from the currency markets of things turn around.

SILVER Video 04.02.22

We have the jobs number coming out on Friday and that of course will have the currency markets going all over the place that will be interesting to see whether or not we are going to have that knock on effect. Ultimately, this is a market that I think will continue to struggle for bullish pressure and has a long way to go before we can truly buy silver and just simply hang on to it. I think we have a lot of concerns when it comes to industrial usage, and of course US dollar strength, although it did take a little bit of a hit during the day. At this point, I would need to see the market break above the $23 level to become convinced of bullish attitude.

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