Silver Price Forecast – Silver Markets Give Up Early Gains

Silver Markets Technical Analysis

The silver market has been rather noisy again during trading on Wednesday, as we initially shot higher but have given back quite a bit of the gains enjoyed in the early hours. At this point, the market continues to dance around the 50-Day EMA, an indicator that a lot of people pay attention to. Just above, we have the $20.00 level that should offer a significant amount of resistance, much like we have the $18.00 level offering support underneath. We are much closer to the resistance than the support, so in that sense it does make quite a bit of sense that we would pull back.

Furthermore, the US dollar has got a short-term oversold vibe to it, and that probably spells trouble for silver. Remember, silver is negatively correlated to the US dollar and interest rates in America. When those assets rise higher, silver typically will fall. Furthermore, we have to worry about whether or not industrial demand is going to flourish in an environment where it looks like everybody is slowing down. It’s very unlikely, so I do think that we return to the $18.00 level again given enough time.

If we were to break down below the $18.00 level, then I think that opens up a move down to the $15.00 level, followed by the $12.00 level. Obviously, it would take a while to get down there, but as long as there is a lot a US dollar strength out there, it’s difficult to imagine that silver is suddenly going to be everybody’s favorite trade. In the short term, it looks like we are bouncing around in a $2.00 range between $18.00 and $20.00, just as we were a couple of months ago.

Silver Price Forecast Video for 27.10.22

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