Silver Price Outlook – Silver Continues to See Volatility

Silver Technical Analysis

The silver market has shown itself to be rather fragile during the early hours on Thursday. But you should also keep in mind that this is a market that is going to be reacting more or less to the thinner parts of the session as the Americans will be celebrating Juneteenth, and the futures market is actually closing early. So, with that, I don’t read too much into it. I just recognize it as a market that is more or less consolidating at the moment and trying to sort out where to go next.

The $35.50 level underneath is significant support, while the $37 level, not only a large round number, but also a proven number, offers resistance. Ultimately, I think you have a situation here where traders are going to continue to ask questions of demand, but also recognize that with the war going on in the Middle East, that has even more demand for safe havens. While silver isn’t necessarily the quintessential safe haven, it is a hard asset.

So hard assets in general will get a benefit from world fighting and a lot of uncertainty. If we can break above the swing high at roughly $37.35, then I think we will go looking to the $40 level. And I do think that happens eventually. But in the meantime, we may just bounce around here trying to get our footing, trying to figure out where to go next in a market that quite frankly got a little overextended.

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