Silver Price Forecast – Silver Continues to See Volatility

Silver Markets Technical Analysis

Silver has fallen a bit during the early hours on Wednesday as we continue to see a lot of noisy behavior. That being said, the market is also one that you need to pay attention to because it could give us a little bit of a heads up when it comes to risk appetite.

Remember, the US dollar has an outsized effect on the silver market, but so do interest rates. There has been a little bit of risk-off behavior in the early hours, but I think that gets repudiated by the end of the day. Quite frankly, the Americans will come in and buy anything they can get their hands on. So, with that being the case, be aware that silver is likely to be a mover, and even if we did break down from here, I think you have a situation where traders will continue to look at this as a potential hedge against inflation, perhaps some safety here, but ultimately this is a strong uptrend. And that’s the main takeaway here. If we can break above the $32.50 level, then the market is likely to go much higher.

Breaking down below the $30 level would take a certain amount of effort and I think that would be very ugly for silver. But given enough time, I do think we’ve got a situation where we are likely to continue to find silver attractive. Probably follows gold to a point, but they do have some differences as silver of course is an industrial metal, so that’s something that you also have to keep in mind.

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