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Silver Price Forecast – Silver Continues to Threaten $25

By:
Christopher Lewis

Silver continues to be very bullish overall, but we are struggling with the crucial $25 level, an area that is obviously a large, round, psychologically significant figure.

Silver coins, FX Empire

In this article:

Silver Price Forecast Video for 01.12.23

Silver Markets Technical Analysis

Silver has been relatively quiet during the trading session on Thursday, as we continue to threaten the $25 region. This is an area that has been important more than once, so it would not surprise me at all to see a bit of a fight here. The market will continue to struggle in general, but I think given enough time, we will see more of a “buy on the dip” attitude come back into it. It’s worth noting that we formed a shooting star during the trading session on Wednesday, so it shows a huge amount of resistance just above coming into the forefront.

It’s important to consider that silver’s value is significantly influenced by several external factors, such as market dynamics related to bond markets and what they are doing. Quite frankly, the interest rates in America rising would hurt silver but recently we’ve seen them falling, and that’s exactly what you are seeing in pricing this market. With this, you need to keep an eye on the 10 year yield, because if it starts to turn back around and rise, that probably puts a significant amount of pressure on the silver market.

Furthermore, you have to pay attention to industrial demand, something that of course causes quite a bit of external pressure on the market as silver is used in a lot of the new “green technologies.” There are a lot of questions right now about the global economy, so I suspect that a lot of the pressure in the silver market probably has more to do with the interest rate situation and of course the desire to protect wealth in a very uncertain environment.

With this, I anticipate that short-term pullbacks are likely, but they probably offer buying opportunities all the way down to the $24 level. If we were to break down below the $24 level, it would be a bit more serious, but right now, when you look at the RSI, you can see we are pressuring the oversold condition as well. It’s a bit stretched for my liking at the moment.

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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