Silver Price Forecast – Silver Markets Pull Back

Silver markets initially tried to rally during the trading session on Thursday but gave back gains above the 50 day EMA to show signs of exhaustion. At this point, the $26 level has offered support, but then again so have the $25 and the $24 level as well. I think it is only a matter of time before we would find buyers coming into the marketplace, showing signs of resiliency. The bond markets in America of course continue to spike, as far as yields are concerned.

SILVER Video 19.03.21

It is those yields that have caused so much trouble when it comes to various commodities and currencies, and that is essentially what we have seen during the day on Thursday. The market continues to see a lot of noise in general, as people are concerned about clipping coupons instead of trying to take the risk that are inherent in the futures markets or even the currency markets. With that being the case, as long as yields continue to spike it takes away the influence of risk appetite based markets, and therefore people simply become bondholders.

That being said, the market is continuing to see silver through the prism of industrial demand, which of course is going to be picking up if we have the reopening trade and of course the “reflation trade” in full effect. As economies around the world reopen, that should drive up demand for silver and a multitude of different industries, and therefore it provides a little bit of a natural “bid” in the market going forward. It is not until we break down below the 200 day EMA that I would be cautious.

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