Silver Price Forecast – Silver Continues to Look Volatile

Silver Markets Technical Analysis

Silver plunged initially during the trading session on Friday, but after the jobs number came out, we bounced down a bit. Ultimately, this is a market that looks really stretched to me, although I do think that we will continue to find buyers in short term dips, at least for the time being.

It’ll be interesting to see how this plays out, because gold, of course, is on fire and that does help silver. But ultimately, you have to keep in mind that silver is a completely different beast. We are in an area that has caused a lot of resistance multiple times in the past, and it’s worth noting that the commitment of traders report coming out of the futures market lists the commercial traders as being heavily short in this market.

Whether or not that holds remains to be seen. But as it looks like right now, the $26 level, of course, is an area that is very important to watch. If we break down below the $26 level, then and maybe then, we could see this market drop back down towards the $24.50 level. Simply put, if you are trading silver through the prism of a precious metal, you’re going to be better off doing gold.

Gold, quite frankly, serves much better in that capacity. There is a certain argument to be made for industrial demand. After all, it does help with the Green Revolution as many of the projects it needs over. But right now, I think you have to look at this through the prism of a market that, at the very least, needs to consolidate.

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