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Silver Price Forecast – Silver Has Buyers Underneath

By:
Christopher Lewis
Published: Dec 2, 2022, 17:55 UTC

Silver has initially fallen during the trading session on Friday but found enough support near the $22.50 level to turn things around and show signs of life.

Silver FX Empire

In this article:

Silver Price Forecast Video for 05.12.22

Silver Markets Technical Analysis

Silver has initially pulled back during the trading session on Friday, testing the $22.50 region. We have turned around since then, as the US dollar has calmed down a bit. The hotter than anticipated jobs number of course had an influence as well, so you need to keep in mind that if we continue to see inflation run hot, it’ll be interesting to see how the silver market reacts. There are a lot of concerns that the Federal Reserve will tighten longer than anticipated, which quite frankly they keep telling people they’re going to. That being said, the market has chosen to completely ignore it, so it continues to look more “risk on.”

If we break down below the bottom of the candlestick, then it’s possible that we drop down to the $22 level, which is basically where the gap formed a couple of days ago. Underneath there, then we have the 200-Day EMA, which is of course a widely followed technical indicator that a lot of people believe defines a trend.

On the upside, if we break up off the highs of the day, I don’t see anything keeping silver from going to the $25 level eventually. Obviously, we may have the occasional pullback, but I do think that there are plenty of buyers underneath willing to get involved. That being said, pay close attention to the attitude of the markets in general, because silver is most certainly a “risk on” asset. It not only has a negative correlation to the US dollar, but it also has a negative correlation to the interest rate situation in America as well.

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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