Silver Price Outlook – Silver Continues to See Volatility

Silver Technical Analysis

Silver has fallen pretty significantly during the early hours here on Monday as the US dollar has strengthened in general. That being said, I think you’ve got a situation where you have to look at this through the prism of a market that perhaps is trying to sort out what the Federal Reserve is going to do and that generally will cause havoc in the precious metals markets because quite frankly, everybody is sitting around and waiting to see whether or not the Fed will cut rates or if they are going to disappoint the market and not cut rates.

Quite frankly, the economic numbers have been a little softer recently, but the question is whether or not the Federal Reserve thinks that all of the danger is gone. And quite frankly, from the latest press conference, I’m not entirely convinced that they are ready to cut rates, at least not as aggressively as people were hoping. With that being the case, I think you’ve got a couple of tough months ahead. And I think you will probably see silver continue to somewhat consolidate as we try to sort out whether or not $37.50 will be held as support. If we break down below there, we have the 50 day EMA near $36.95 coming into the picture to offer a bit of potential support as well.

Anything below there, then I think things get a little bit dicey. We’ll just have to wait and see how that plays out. But clearly, this is a market that I think would probably not take too much to really kind of kick it over and then perhaps try to challenge this noisy area below. On the other hand, if we can rally from here, the $39 level would be your initial target, followed by 40. The long-term outlook for silver, I believe, is still positive, but I think we have probably several weeks of choppy sideways dangerous volatility ahead of us.

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