Silver Price Forecast – Silver Markets Get Hit But Recover

Silver continues to be very volatile, as the industrial trade was hammered early on Wednesday as the ‘risk off’ trade came back into vogue. The markets continue to look bullish from a longer-term standpoint, mainly due to the ‘reopening trade’ that should continue to push commodities higher. Silver is an especially interesting trade though, as industry will continue to need more and more of the metal. In this sense, the silver markets might be a bit insulated from a longer-term standpoint as the need is so great.

SILVER Video 20.05.21

The long wick during the session on Wednesday shows that there are a lot of buyers underneath and should continue to be. The US dollar falling will help the silver market, although it is worth nothing that the greenback actually bounced a bit during the session. This is a short-term phenomenon, and the overall trend is likely to continue. The Federal Reserve continues to flood the markets with liquidity, which should continue to weigh upon the greenback, and this is something that should continue to work in silver’s favor. The $30 level above is the target, and if we can break about there, the market is likely to go looking towards the $50 level, as we have seen a couple of times in the past.

The 50 day EMA underneath is curling higher and has quite often offered support. As things stand currently, it does not look like that should change anytime soon, and as a result I am looking at that area as a potential buying opportunity as well. The trend remains, despite the nasty move we had during the day.

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