Silver Price Forecast – Silver Markets Gap Higher

Silver markets have been bullish to kick off the trading session, as we gapped above the $24 level only to slam into the 50 day EMA. By doing so, this shows that the market has quite a bit of work ahead of it if it wants to go to the high of the range that we are in. To the downside, the $22.75 level should be supported, to since the 200 day EMA will be. I do like the idea of buying dips, but let us face it here, the US dollar has seen a bit of a surge in the last couple of days.

SILVER Video 11.11.20

Remember that silver does tend to be very sensitive to the US dollar in general, so it is worth paying attention to the US Dollar Index. If the dollar starts to rise again, that could work against the value of silver. While silver is sometimes bought as a safety trade and a way to get away from the central banks around the world flooding the markets with liquidity, the reality is that silver has an industrial component built into it as well, so the question is whether or not we are suddenly going to take off and some type of economic whirlwind. At this point, I think it is a bit early and I would love to see some type of significant pullback in order to take advantage of “cheap metal.”

I do think that we probably get a little bit more of an opportunity to buy silver at a lower price, so I am not willing to jump in right away.

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