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Silver Markets Give Up Early Gains

By:
Christopher Lewis
Published: Feb 9, 2022, 16:35 UTC

Silver markets initially shot higher during the trading session to continue the bullish pressure that we had seen the last couple of days, however we have given back quite a bit of those gains.

Silver Markets Give Up Early Gains

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Silver markets have initially rallied during the trading session on Wednesday but have given back quite a bit of those gains to show signs of exhaustion. As we get the CPI numbers on Thursday, this is probably not going to be a huge surprise, as the inflationary situation will have a lot to do with where rates go, and thereby where the US dollar goes. Remember, there is a pretty strong long-term downtrend that we continue to test the $22 level for support. Whether or not we can break through there is a completely different question of course, but if we do, we still have to deal with the overall support level that extends all the way down to the $21.50 level, so it is likely that we see a lot of noise even if we do drop down towards that region.

SILVER Video 10.02.22

On the other, if we break above the top of the candlestick then we could go looking to fill the massive gap above. That would also coincide with an attempt to get to the 200 day EMA, so it all kind of ties in together. Breaking above there could have the market trying to reach towards the downtrend line above. I do not necessarily think it is going to be easy to get there, but the CPI numbers could change everything. In fact, they come out lower than anticipated we could see the US dollar fall apart, which of course would work wonders for the price of precious metals in general. Ultimately, we are still in a downtrend so you have to be aware of that.

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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