Silver Price Forecast – Silver Markets Continue to Find Buyers

Silver markets have pulled back initially during the trading session on Friday but turned around to show signs of strength right around the $24 level. Strength might be a bit of an overstatement, but certainly the word support would come into play. Ultimately, we are dancing back and forth around the 50 day EMA, which sits at the $24.25 level, and of course is flat. This suggests that it is going to continue to be somewhat range bound but for my money, I believe that a bounce from the 200 day EMA the way we have is a very strong sign.

SILVER Video 14.12.20

I think that the market sees a significant amount of resistance at the $26 level above, and therefore if we were to reach that area, I would anticipate seeing a bit of a pushback. However, if we are to break above there it is likely that we go looking towards the $28 level, possibly even the $30 level.

All of this being said, the US dollar is massive in its influence on silver, so if it rises, typically silver will fall, and vice versa. The markets continue to be very noisy, but the most important thing that I see here is the possibility that we are trying to form some type of basing pattern for a bigger move. To the upside, I think there are multiple areas that will cause issues but given enough time it is likely that we will see enough momentum due to the fact that the stimulus talks in the United States should eventually provide some type of deal.

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