Silver Price Forecast – Silver Markets Testing Big Figure

Silver markets have rallied significantly during the course of the trading session on Monday but then gave back the gains near the $26 level. By doing so, the market then dropped towards the $25 level. The $25 level of course would be a large, round, psychologically figure that a lot of people will be paying attention to. In fact, I believe that the market will continue to see a lot of interest in this area, but I think that the choppiness is going to be all over the place due to the massive amounts of stimulus out there and of course the idea of the “reflation trade”, which should send most metals going higher.

SILVER Video 09.03.21

Looking at the candlestick, it is a little less than impressive, so I think that there could be some issues ahead. However, if we were to turn around a break down below the 200 day EMA, then the market could go looking towards the $22 level. To the upside, if we were to break above the 50 day EMA then silver could probably go looking towards the $28 level, but I do think that silver is going to have a lot of issues as long as interest rates in the United States continue to climb. Pay attention that 10 year note, it is causing havoc across the world. The 1.6% yield is at historically high, but the fact that we got there seemingly overnight has a lot of people concerned. That being said, I do think that eventually silver becomes very hot market, so I have no interest in shorting regardless of what happens next. I am looking for signs of support or momentum to the upside in order to get to the upside.

For a look at all of today’s economic events, check out our economic calendar.