Silver Price Forecast – Silver Markets Get Hit Hard

Silver markets have broken down a bit during the course of the trading session on Tuesday to slice through the 50 day EMA. The market breaking down below the 50 day EMA does suggest that we could go looking towards the beginning of the last surge higher, which kicked off at roughly $23.25. Nonetheless, silver looks very well supported in that general vicinity, but it looks at this point in time that there are serious doubts. Keep in mind that silver is a significant industrial metal that a lot of people will be paying close attention to, as the reopening trade demands quite a bit of it. Nonetheless, you should also pay close attention to the US Dollar Index, as it has a huge negative influence on this market.

SILVER Video 03.11.21

To the upside, we have the 200 day EMA sitting at the $24.53 level, which is an area that people will be paying close attention to. After that, we have the $25 level, which is a large, round, psychologically significant figure, and it does make a certain amount of sense that we will be paying close attention to that figure. If we break above there, then it opens up the possibility of more of a “buy-and-hold” situation.

One thing is for sure, you need to be very cautious trading silver, because it is so highly volatile. Quite frankly, you need to either use a very small position and build only one the market works out in your favor, or even look to the idea of trading an ETF that is highly exposed to the commodity itself. Silver will remain volatile, but it certainly looks as if it is suffering currently based upon the candlestick.

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