Silver Price Forecast – Silver Markets Plunge

Silver markets collapsed during the trading session on Friday, as bond yields rallied in the United States. This drove money into the US dollar, which of course is toxic for silver. However, it will be interesting to see whether or not this can stick. I think the next couple of days will be crucial for this market so therefore I will not be trading it. The main reason I say that is because it is difficult to keep an eye on the 10 year yields at the same time as trading the precious metals market, all while doing my work. There is a negative correlation between the 10 year yields and the precious metals markets, although it is typically seen more in the gold markets.

SILVER Video 11.01.21

That being said, if we can see some type of support near the 50 day moving average underneath, perhaps in the form of a hammer, then I would be more than willing to start buying. Until then, and only until then, I would be cautious and on the sidelines. A supportive daily close however, does get me interested in buying yet again. I do think longer-term silver does go higher, but we obviously have some volatility ahead of us as per usual. That is the rub when trading silver, it tends to be extraordinarily volatile and can cause massive headaches when you are not paying attention. One thing is for sure, I am a longer-term buyer of silver, but I would only do so in very small bits and pieces. I have no interest in shorting this market right now, I see far too much in the way of support.

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