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Silver Price Forecast – Silver Markets Shoot Straight Up In The Air As Federal Reserve Goes All In

By:
Christopher Lewis
Published: Mar 24, 2020, 15:36 UTC

Silver markets have exploded to the upside during the trading session on Tuesday, breaking above the $14.00 level as the Federal Reserve has stepped in and gone “all in” as far as quantitative easing is concerned.

Silver

Silver markets rallied significantly during the trading session on Tuesday, breaking above the psychologically important $14 level. That being said, the market is likely to see some type of pullback in the short term. Given enough time, it’s likely that the market then will find buyers again. This type of move is quite often the first move that signifies a trend change. Pullbacks at this point are likely, due to the fact that it is countertrend, but the real question is whether or not the next move lower is a “higher low” than the previous one. If that’s going to be the case, it’s very likely that we will in fact see a significant trend change.

SILVER Video 25.03.20

Silver is an interesting precious metal because it does act as a precious metal, but at the same time it also has a major industrial component built-in. If that’s the case, traders are betting on the precious metal side due to the fact that one would have to think industry doesn’t have much of a chance. The $15.00 level above should be significant resistance, so I think it will be difficult to get above. I would be very surprised if we get above there without some type of significant effort. Because of this, I do think that a pullback is more likely than not. To the downside, the $12.00 level should be a significant support barrier. If we were to break below there, that would obviously be an extraordinarily negative sign.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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