Silver Markets Have a Volatile Session to Kick Off the Week

Silver markets have gone back and forth during the trading session on Monday as we continue to see are a lot of volatility in futures markets overall. After all, silver is not only a precious metal, but it is also an industrial metal, which of course is a bit of a cloudy proposition right now because we do not know what kind of demand there will be down the road.

SILVER Video 08.03.22

Silver breaking above the $25.50 level was a big deal, but whether or not it can break above the highs of the trading session on Monday is a completely different question. I certainly think that we need to see a little bit of a pullback to offer enough value to keep the market bullish. After all, the market is likely to continue to be a “buy on the dips” scenario, as we have seen so many people looking to get involved. If we were to break down below the $25 level, then we could see a significant selloff because it is such a large, round, psychologically significant figure and an area where we have seen a lot of trouble in the past.

For what it is worth, the 50 Day EMA is starting to curl higher, perhaps trying to break above the 200 Day EMA, causing the “golden cross” that a lot of people pay close attention to. That of course is a longer-term bullish signal, but silver is more than capable of disappointing once we get to higher levels, so I do think that the uptrend is somewhat limited to roughly $27.50.

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