Silver Price Analysis – Silver Rallies as Weak Jobs Report Pressures Dollar

Silver Technical Analysis

Silver has rallied a bit during the trading session on Friday, but with thin liquidity, the Americans aren’t here. I think this could also be a little bit of short covering heading into a 3-day weekend, so I wouldn’t read too much into this. But what I do think is at this point in time, we will see a certain amount of exhaustion come into the market, maybe a little bit higher here, and then we can start shorting.

If the market does fall below the $60 level, I think that is the sign that we’re probably going to break down rather significantly, perhaps down to the $50 level. If we rally from here, the market is going to look at the 200-day EMA as a potential target. If we break above there, then we can have a different discussion.

Economic Catalysts and Long-Term Investment Outlook

But as things stand right now, I understand that the jobs report was weaker than anticipated, but that doesn’t mean things change drastically overnight. After all, we’ve had a few weak jobs reports over the last year, and we can see what’s happened with the US dollar, silver, interest rates, or whatever. So, all things being equal, this is a market that I think continues to see a lot of negative pressure in this market continue.

That being said, longer term, if the interest rates start to fall in America or, perhaps more importantly, the US dollar falls, then silver can take off. I think longer-term silver is a buy. I think silver is an excellent longer-term investment, but you have to do so sparingly because of the leverage involved in the futures market.

You can do ETFs, that type of thing, because there is a supply and demand imbalance, but right now we’re focusing more on the dollar and interest rates.

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