Silver Price Forecast – Silver Markets Continue to Grind HigherSilver markets have rallied a bit during the course of the trading session on Friday as we go looking towards the 50 day EMA.
Silver markets have rallied a bit during the course of the trading session on Friday, reaching towards the 50 day EMA. This of course is an area that will attract a lot of attention, due to the fact that the 50 day EMA is very popular. Nonetheless, this is a market that is trying to grind higher, and it did break above the top of the shooting star from the previous session. That attracts a certain amount of attention in and of itself, so I think at this point we need to look at this through the prism of a bit of a turning, and whether or not the inflation will push precious metals higher, or for that matter if the US dollar will work against it?
SILVER Video 05.07.21
Silver is a bit different in that sense though because there is a significant amount of industrial demand for the metal, so of course that is a completely different driver. If we are in the midst of a reopening trade, then I think silver should continue to be very bullish, but I also recognize that we have a lot of work to do before I could seriously think about becoming “buy-and-hold.” If we do break above the 50 day EMA though, it is very likely that we could go looking towards the gap above, near the $27.75 level. If that is going to be the case, then we might have a nice short-term buying opportunity for a market that has yet to fill that gap, something that most futures markets will do given enough time. Because of this, I think that we do have more of an upward potential that the downward potential.
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