Silver Price Forecast – Silver Gives Up Early Gains
Silver Price Forecast Video for 06.12.22
Silver Markets Technical Analysis
Silver has initially tried to rally during the trading session on Monday but gave back gains rather quickly as we have seen the US dollar turned around a bit. Ultimately, we need to look at this market through the prism of being overbought, and of course we have that huge gap underneath that needs to be filled, sitting just below the $22 level. That may very well be what we see next, and of course the US dollar will have some type of influence on this market as well. Remember, silver has a massive negative correlation to the US dollar, and perhaps more importantly, the interest rate market.
Silver also has an industrial component that a lot of people will be paying attention to, so keep in mind that if we continue to see a potential slowdown, that could work against silver in general. On the other hand, if we were to turn around a break above the top of the candlestick, then it opens up the possibility of a move to the $25 level, which I still think is very possible, but the reality is that the markets are going to be very noisy, and quite frankly silver becomes very volatile at the drop of a hat anyway.
With that in mind, I would be very cautious about my position size, and of course the stoploss placement as this market will be very noisy over the next week or so. We have the Federal Reserve meeting in the middle of next week that will probably be the last major event of the year, and after that, volume will completely disappear.
For a look at all of today’s economic events, check out our economic calendar.