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Silver Price Forecast – Silver Rally Only to Give Up Some Gains

By:
Christopher Lewis
Published: Nov 2, 2020, 16:59 GMT+00:00

The silver market rallied initially on Monday, breaking above the $24 level but did give up some of the gains as we get above that crucial level.

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Silver markets rallied initially during the trading session on Monday, breaking above the $24 level. However, we have seen a lot of resistance above there to turn the markets back around. By doing so, the market shows that we are going to continue to struggle going higher, and of course we have to keep in mind that the 50 day EMA is just above.

SILVER Video 03.11.20

While I do not like the idea of shorting silver, I do expect that we will probably pull back a bit. Ultimately, I think that will only end up being a buying opportunity as it should be plenty of support near the bottom of the hammer from Thursday, and of course the $22 level. Underneath there, we have the 200 day EMA and the $20 level as well. Given enough time, I think that value hunters will return, but there is highly probable cause to think that perhaps the US dollar will strengthen a bit in the short term as we have a lot of headwinds out there that could cause major concerns.

The US election of course is a major problem, but beyond that we have a lot of concerns coming out of Europe with the economy locking down. If we are in fact going to see European lockdowns, that should drive the value of the US dollar as well. This could be part of the reason that silver gets its pullback, but quite frankly from a longer-term standpoint with central banks out there pumping of fiat currency, it makes quite a bit of sense that buying on the dips continues to work over the longer term.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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