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Christopher Lewis

Silver markets initially fell during the trading session on Wednesday but have seen buyers underneath to pick it back up. Silver looks as if it is hanging around the 50 day EMA with the intent to eventually bounce. Quite frankly, if the selling pressure continues to get pushed back, I think it is only a matter of time before silver takes off. This is clearly a market that is well supported and tenacious, so I do anticipate that eventually we will break above the $26 level.

SILVER Video 28.01.21

The next hurdle to get through will probably have more to do with the question-and-answer part of the press conference with Jerome Powell, which probably will not bring in any new revelations, but it could bring in fresh US dollar selling. If that is the case, that should drive the demand for precious metals to protect wealth much higher. That of course is like a rocket fuel for what I am seen on this chart, opening up the door for a move to the $28 level. To the downside, if we do break down below the $24 level then we need to start taking a look at the 200 day EMA which is closer to the $23 level.

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I do think that will continue to support the longer-term move to the upside, and quite frankly we have been base building for what seems like ages now. I think it is only a matter of time and we only need some type of catalyst to kick things forward and go looking towards the highs yet again. Longer-term investors clearly like silver, just as they do gold.

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

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