Silver Price Forecast – Silver Markets Have Choppy Session

Silver markets have traded back and forth during the course of the session on Monday as we continue to see a lot of noise in the markets. One thing that of course is not helping the situation is the fact that the Federal Reserve is now in play, meaning that they could very well raise interest rates relatively soon. If that is going to be the case, then it makes quite a bit of sense that we will eventually see the precious metals take a bit of a hit. However, you should keep in mind that silver is not simply a precious metal, rather it is also an industrial one.

SILVER Video 11.01.22

The $22 level underneath begins massive support that extends all the way down to the $21.50 level, so at this point in time I would think that there are a significant amount of buyers underneath. Because of this I am thinking along the lines of value as I might be a buyer on dips. Obviously, we would need to see some type of catalyst to push silver higher, but simple support might be one of the biggest reasons to think about it at this point.

All things being equal, you should pay attention to the US dollar, which of course will probably be the biggest problem that silver faces, as there is a rather significant negative correlation between the two assets. Because of this, you should always keep your US Dollar Index chart out to get an idea as to whether or not there is going to be some type of currency headwind. Nonetheless, this is a market that I think is trying to search for buyers so it will be interesting to see whether or not we can keep up the pressure that the market has seen every time we dip.

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