Silver Price Forecast – Silver Drifts Lower

Silver Price Forecast Video for 02-01-2024

Silver Markets Technical Analysis

Looking at the silver market, you can see that we did pull back just a bit on Friday, but it appears that the 50-day exponential moving average is doing everything it can to lift the market. We are in an area right now that has previously been both support and resistance, and of course, markets are a bit choppy at the moment. This isn’t a big surprise considering the time of year and of course the fact that the markets have been so volatile over the last several months.

With that being the case, I don’t read too much into the candlestick on Friday, but I do recognize that we are trying to carve out some type of range overall. So, with this in mind, I like the idea of buying on dips, but I need to see some type of bounce in order to get excited about it. A negative correlation to interest rates in the United States is well known, so I’ll be watching the 10-year yield.

In America, if it starts to drop again, then I’ll be very interested in silver. You will also have to pay attention to the economic numbers because silver is an industrial metal. So unlike gold, it isn’t just a precious metal, it is a market that will react positively to strong economic numbers. After all, demand for silver will pick up through industries such as electronics and “green technology.”

I am bullish on the silver market as the Federal Reserve is going to try to pump the economy up through loosening monetary policy in 2024, but I also recognize that there is a hard ceiling at $26. As things stand right now, it looks like the 200-day EMA, which is currently just below the 50-day EMA, is the bottom of the overall trend. If we break down below there then we have to reset and kind of rethink things as to where we could go longer term.

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