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Silver Price Forecast – The Silver Market Continues to Look Threatened

By:
Christopher Lewis
Published: Aug 4, 2022, 15:47 UTC

Silver markets initially shot higher during the trading session on Thursday but continue to struggle with the 50 Day EMA.

Silver Price Forecast – The Silver Market Continues to Look Threatened

In this article:

Silver Markets Technical Analysis

Silver markets have rallied quite significantly early during the trading session on Thursday but have found the 50 Day EMA to be a bit too much to get above. Furthermore, we also have the $20.50 level to worry about, so it all comes together in a massive amount of resistance. I think at this point, we probably have a lot of things to work through right now, not the least of which will be the fact that the Non-Farm Payroll announcement coming out during the session on Friday.

If we break down below the low of the Wednesday session, I suspect that the silver market will start to fall quite rapidly. In that scenario, it’s likely that we have a situation where the Federal Reserve will decide what happens next. As traders continue to worry about the bond markets and yields, it will have a major influence on what they do with precious metals. Ultimately, this is a market that is vulnerable to higher yields, and of course a stronger US dollar. If the jobs number comes out hotter than anticipated, that may be exactly what happens.

On the other hand, if the market were to break above the $20.50 level, it’s possible that we could see a much bigger move. If that were to happen, the market is probably going to go look into the $22 level, maybe even the 200 Day EMA which is presently just below the $22.50 level. Either way, I think we are about to see an explosive move. That being said, keep in mind that we have been in a downtrend for a while, so one would think that is the easier route to take.

Silver Price Forecast Video for 05.08.22

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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