Silver Price Forecast – Silver Markets Continue To Hug 200 Day EMA

Silver markets have gone back and forth during the trading session again on Thursday, just as we had on Wednesday. We are currently trading just above the 200 day EMA, but also have the 50 day EMA just above. In other words, this is a market that is going to continue to be very noisy in this general vicinity. That being said, one of the things that is helping silver is the fact that there are plenty of central banks around the world liquefying the markets and loosening monetary policies, so that typically does quite a bit of good for metals in general. That being said though, silver is a little bit different in the sense that the market also prices in a certain amount of industrial demand as well.

SILVER Video 06.03.20

With that being said though, if we break above the red 50 day EMA on the chart I think we continue to go higher, perhaps reaching towards the $18.00 level. On the other hand, if we break down below the most recent lows, it’s likely that the market will then go looking towards the $16 level underneath. I do believe that market participants will continue to favor buying over selling, but this may be a bit of a laggard in comparison to gold which seems to be much more favored. In fact, there are arguments to be made for a pairs trade by shorting silver and buying gold to pocket the difference.