Silver Price Forecast – Silver Plunges

Silver Price Forecast Video for 24.05.23

Silver Markets Technical Analysis

Silver fell rather hard early on Tuesday as PMI numbers out of Europe and the United Kingdom came out much softer than anticipated. Because of this, we have seen a lot of currencies lose value, and therefore the US dollar has been that default victor early in the day. However, we also have US PMI numbers coming out, which could turn everything back around. If that’s going to be the case, then it’s likely that we continue to see a lot of noisy behavior in this market.

In general, I think this is a situation where the market is going to try to drop down to the 200-Day EMA, which currently sits just below the $23 level. Furthermore, we have the 61.8% Fibonacci or to a level just below there, so I think that also comes into the picture. With that in mind, it’s a situation where we probably have a certain amount of support underneath, but at this point it’s obvious that the market is much more negative than it was just a couple of weeks ago. With this, the market will continue to see a lot of noisy behavior as we are not only asking a lot of questions about the global economy but also sitting between the 200-Day EMA and the 50-Day EMA indicators.

One of the biggest concerns we are going to face is that the industrial demand for silver could be collapsing, and if that is going to be the case, it’s likely that it will continue to underperform gold. Remember, when you see precious metals fall off, the silver market tends to fall much faster and harder than the gold market because at least gold has more of a wealth preservation of fact attached to it. It’s not that silver cannot be used for that, just that it is far too volatile to make it the go-to metal instead of gold which is a bit more stable. With that being said, the candlestick on Tuesday is rather negative, so looks like we are going to continue falling. But that in mind, signs of exhaustion might be sold into on short-term charts, but we need to pay special attention to what’s going on near the 200-Day EMA if and when we get there.

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