Silver Price Forecast – Silver Markets Slam Into 200 Day EMA After Surprise Rate Cut

Silver markets have been rallying during the trading session after the surprise 50 basis point rate cut during the session by the Federal Reserve. This of course had money flowing into the precious metals markets, because of course the US dollar has gotten hammered. Ultimately, this is a market that will continue to be very noisy and difficult to deal with but it should be noted that we were in a longer term uptrend to begin with, and with central banks around the world looking to add liquidity to the marketplace, it does make sense that precious metals in general will continue to get a bit of a bid.

SILVER Video 04.03.20

On a daily close above the 200 day EMA that opens up the idea of a move towards the 50 day EMA, which of course is crucial. Ultimately, I think that the market will go looking to higher levels, due to the fact that central banks around the world will certainly follow suit. Furthermore, there is a bit of a safety bid attached to silver, and perhaps if China gets back to work there might even be a little bit more in the way of more industrial demand which would be quite nice.

As far as selling is concerned, I think that if we were to turn around a break down below the massive negative candlestick, then the market could go looking towards the $16.00 level next. That being said though, it’s difficult to imagine the central banks are suddenly going to do anything to cause precious metals to suddenly lose monetary value.