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Silver Price Forecast – Silver Markets All Over the Place

By:
Christopher Lewis

Silver markets continue to go back and forth at the open for the week, as the Tuesday session saw plenty of volatility.

Silver

Silver markets went back and forth during the trading session on Tuesday as traders try to figure out whether or not it is completely “risk on”, or if there is a lot of concern when it comes to the possible growth situation. Remember, silver is not only a precious metal, but it is also a major industrial metal. Ultimately, this is a market that I think continues to see a lot of volatility, and the $18 level continues to be a major resistance barrier. There is a slight gap just above there, so there is quite a bit of resistance. Do not be wrong, the gap has been filled previously but that does not mean that people will be paying attention to it.

SILVER Video 27.05.20

The $17 level underneath is significant support, so if we were to break down below that level it is highly likely that we could drip down towards the 200 day EMA. All things being equal though, this is a market that simply looks as if it has no idea where to go, and therefore I think we will continue to see a lot of back and forth in this general one dollar range. I do not like silver for the longer-term as much as I like gold though, as there seems to be a lot of potential negative headlines out there that could move the precious metal trade much higher. All things being equal though, I would not be a seller of silver regardless, because there is going to be a certain amount of demand built in.

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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