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Silver Price Forecast – Silver Continues to See Volatility as Israel Strikes

By:
Christopher Lewis
Published: Apr 19, 2024, 13:59 GMT+00:00

The silver market has been very noisy on Friday, as the situation in the Middle East continues to be a major headache for traders and policymakers alike.

In this article:

Silver Markets Technical Analysis

Silver spiked overnight as Israel attacked Iran and traders ran for cover. Then the attack was very limited, so the market breathed a huge sigh of relief. The rush to precious metals has been rebuked, and now it looks like we have gone right back into the same pattern that we had been in previously.

The $28.50 level continues to be a major area of resistance, and interest in general, and I think at this point, there are a couple of different things that you need to pay attention to. You should be cognizant of the fact that a move above the $28.50 level is possible, but there’s a lot of noise between here and the $30 level and sideways action for a while, at least until we find some type of geopolitical issue or interest rate situation that gets the market moving, I think is very likely.

On the other hand, though, we could get a bit of a pullback. A pullback would be more likely than not thought of as a buying opportunity, with the $26 level underneath being a bit of a floor. The 50 day EMA is approaching that area, and I think it will be very important. Anything below $26 and I think the silver market falls apart. That being said, right now it looks like we’re pretty much content to grind sideways. Regardless, I am not interested in selling or shorting silver at this point. Silver is always going to be more volatile than gold, but at the same time, it will move in the same direction overall.

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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