Silver Price Forecast – Silver Markets Test 25 USDSilver markets fell again during the trading session on Friday to show signs of weakness, reaching down towards the $25 level.
Silver markets have fallen again during the trading session on Friday to reach down towards the $25 level, which of course is a large, round, psychologically significant figure, and a place where we have seen support in the past. Furthermore, we also have the 200 day EMA sitting just below at the $24 level, so I think it is only a matter of time before silver catches its footing again. However, one of the biggest problems that we have seen recently has been the interest rates in the United States rising in the bond market, so having said that it has launched the US dollar higher.
SILVER Video 08.03.21
All that being said, there is a ton of stimulus coming out the United States and one would have to think that sooner or later we are going to see more demand for silver due to the economy opening back up and of course industrial demand. Nonetheless, we are still very much in an uptrend so I would not be a seller regardless. At this point in time, the market is likely to go looking towards the $28 level, an area where we have seen resistance before. All things been equal, I think that we are getting very close to an area where value hunters will come in and pick up the silver markets. Because of this, it is not until we break down below the $22 level that I would be concerned about this market. Longer-term, I do think that eventually the reflation trade takes hold, and we see silver break through the $30 level, which historically has meant that there is a new attempt to reach towards the $50 level.
75% of retail CFD investors lose money
For a look at all of today’s economic events, check out our economic calendar.