Silver Price Forecast – Silver Markets Have Magnet in 50 Day EMA

Silver markets have been back and forth during most of the trading session on Wednesday as we await the FOMC results. After all, traders are paying close attention to the yields coming out of the bond market, and as a result it makes quite a bit of sense that we would be paying close attention to what happens over there. If yields rise, the market tends to punish risk assets, as you can get a “risk free rate of return” by clipping coupons in the bond market. This also puts upward pressure on the US dollar, which weighs upon the silver market.

SILVER Video 18.03.21

However, the silver market of course is highly influenced by the industrial demand part of the equation, and if we get some type of major reflation trade going on, so overall more than likely take off to the upside. At this point, it does look like there is a significant amount of support near the $25 level and extends down to the $24 level underneath which is where we the 200 day since at. At this point time, the market is likely to continue to see a lot of volatility, and therefore yet to be very cautious about your position size. Nonetheless, I have no interest in shorting silver even though it appears that the bond market is working its way against precious metals in general. Remember, this is more about industrial demand at this point then it is anything else, but it bond yields dropped, that provides a bit of a “double whammy” for the buyers to jump in and pick this market up.

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