Silver Price Forecast – Silver Markets Continue Choppy Behavior

Silver markets have gone back and forth during the trading session on Monday, as the market dances around the 50 day EMA. The 50 day EMA is of course a large technical figure that a lot of people pay attention to, and it is flat. With this tells me is that we are essentially still in a short-term range. Ultimately, this is a market that continues to see a lot of push and pull, due to the fact that the risk appetite of traders seems to move rapidly in one direction or the other at the slightest hint of a headline. Silver of course is very sensitive to risk appetite, and the value of the US dollar in general.

SILVER Video 17.11.20

That being said, it is worth noting that the US dollar has been extraordinarily negatively correlated to silver as of late, but at this point time, the market also has to focus on whether or not there is going to be any industrial demand, so it is difficult to imagine that we are simply going to go straight up in the air. With this being the case, I think we are essentially stuck in the same range that we have been in for some time. The $22.75 level underneath is massive support, just as the $26 level above is massive resistance. I think we simply are sitting in the middle this range and therefore it is difficult to get overly aggressive in one direction or the other in the short term. I am waiting to see what the market does on the outside of the range.

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