Silver Price Forecast – Silver Markets Continue to Flirt With 200 Day EMA

Silver markets have rallied just a bit during the trading session on Monday to slam into the 200 day EMA yet again. Furthermore, we have to keep an eye on the $25 level just above, which of course is a large, round, psychologically significant figure. The $25 level will attract a lot of attention, as it has been important multiple times in the past. Furthermore, when you look at the shooting star from the previous session, you can see that we rallied to a level just below the $25 level and have given up those gains. Now that we are testing that same area, it does make a certain amount of sense that we would see hesitation.

SILVER Video 26.10.21

Precious metals in general will be highly influenced by what is going on in the treasury markets, as we have seen yields continue to rise which weighs upon the value of metal, although silver is a little bit different than gold, due to the fact that it has a major industrial component as well. After all, silver is used in a lot of the new “green technologies” that the world is clamoring for. Because of this, I do think that silver will continue to outperform gold overall.

That being the case, I think that a pullback from this area makes sense, but it may not necessarily be a massive trend change. While I do not anticipate a massive selloff, I still think that we are a bit overextended so at the very least I would not be surprised to see this market reached down towards the 50 day EMA underneath. If we turn around a break above the $25 level though, then it is likely that we go looking towards the $26 level.

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