Silver Price Forecast – Silver markets teeter on Friday

Silver markets fell during trading on Friday as the US announced an addition of over 300,000 jobs for the month of January. Obviously, this is good for the US dollar which is bad for the silver market. However, there are a lot of different reasons for Silver to be rallying right now, not the least of which is going to be geopolitical uncertainty. Beyond that, the US dollar seems to be soft for the longer-term move, pushed down there by the Federal Reserve sounding much more dovish during this last press conference. This in turn sent the market much higher in silver, reaching towards the $16 level.

SILVER Video 04.02.19

Since then, we have pulled back a bit and now I think that what we are looking at is a short-term pullback in order to build up momentum. After all, the $16 level is important, and it’s an area that we have seen a lot of action at previously. It’s not a surprise that we can break above it in one quick shot, so pulling back to build up the necessary momentum is probably going to be what we see. I think that the buyers will be interested in getting into this market underneath as it should show a bit of value.

Looking at the 20 day EMA, pictured in green on the chart, you can see that it is turning higher, and has recently just crossed above the 200 day EMA. Ultimately, I think that looking for value in order to pick up silver at a cheaper level, down to at least the $15.50 level makes a lot of sense.