Advertisement
Advertisement

Silver Price Forecast – Silver Gives Up Early Gains

By:
Christopher Lewis

Silver initially tried to rally during the trading session on Wednesday, but then turned around to show signs of exhaustion again. Quite frankly, silver is overdone.

Silver bullion, FX Empire

In this article:

Silver Price Forecast Video for 30.11.23

Silver Markets Technical Analysis

Silver initially tried to rally during the trading session on Wednesday but gave back gains as we broke above the $25 level. Quite frankly, this is a market that has gotten far too ahead of itself, and it makes a certain amount of sense that we would see hesitation at this point. That’s not to say that we can’t go higher, but the reality is that the market has gotten too far ahead of itself. The market could drop all the way down to the $24 level, and still be very bullish. Quite frankly, it’s not overly surprising that the market pulls back from here, because quite frankly everything has gotten overdone. The markets are out of control at the moment, and a little bit of reality needs to come back into the picture.

Furthermore, when you look at the gold market, it is testing an area that’s been a lot of trouble multiple times in the past as well. Because of this, it’s very likely that we will continue to see buyers jump in and push this market to the upside, and even if they were to do so, the reality is only so many people are left to buy silver. You are better off waiting for some type of value, which can only come in the form of a pullback. Even if we don’t pullback, at the very least I think it makes quite a bit of sense to go sideways for a while, as people digest these gains.

All of that being said, the reality is that if the bond market starts to turn back around, we could very well see silver get punished as interest rates rise in the United States. The silver market is extraordinarily sensitive to interest rates rising, which puts a lot of downward pressure on the metal. Furthermore, we have to worry about industrial demand, something that could be falling due to the economy slowing down. That being said, expect a lot of volatility but that will be nothing new due to the inherent volatile and erratic nature of the silver market to begin with.

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.

Did you find this article useful?

Advertisement