Silver Price Forecast – Silver Markets Break 200 Day EMA

Silver markets have broken significantly during the trading session on Tuesday, as we have slice below the 200 day EMA. The 200 day EMA is a technical indicator that a lot of people will be paying attention to as per usual, so it does make a certain amount of sense that we would see some buying in this area, but that being said the market can do whatever it wants despite the technical indicators. Furthermore, the market has seen quite a bit of US dollar strength, which is toxic for silver in general.

SILVER Video 31.03.21

If the world is going to be concerned about the recovery, then it does make sense that silver suffers. The $24 level is crucial and giving up the support level would open up the possibility of a move down to the $22 level. The $22 level is a large, round, psychologically significant figure and support so breaking down below their opens up the possibility of an even bigger move in silver. Ultimately, this is a market that I think probably does break down, because the yields in America continue to rise.

As long that is going to be the case, I do believe that silver will continue to outperform gold, which is much more sensitive, but quite frankly precious metals in general look horrible right now. That being said, I do believe that it is probably only a matter of time before we find value hunters, but the question for me at this point is whether or not it happens right now, or at the $22 level? If it breaks down below $22, I suspect you will have plenty of time to pick up silver “on the cheap” at lower levels.

For a look at all of today’s economic events, check out our economic calendar.