Silver Price Outlook – Silver Finds Buyers After Initial Drop

Silver Technical Analysis

Silver has been extraordinarily bullish later in the session after initially selling off. The 50 day EMA is right here as well, so that of course is something that people would be paying attention to. This was a significant shot across the bow as it looked like we were very complacent. But I think at this point, the market is likely to continue to see the $33 level as fair value or at least a magnet for price. And of course, it’ll be interesting to see if we can continue to see a lot of upward pressure.

So far, it certainly looks as if we are trying to do exactly that. And with that being the case, you’ve got a scenario where traders are looking at the US dollar, they’re looking at the potential industrial demand, and of course, they are wondering whether or not central banks around the world will cut. Loosening central banks, especially the Federal Reserve, would drive silver higher as well.

Remember, though, this is not just a precious metal. It is also a significant industrial metal that you need to be aware of. Industrial metals, of course, need a functioning and strong economy to really start to pick up. And if we in fact do start to see more stimulus added to the economy, especially after the previous sessions, horrible GDP numbers in America, that will not only spur economic growth and demand for silver, but it will also bring down the value of the US dollar and people will start running into precious metals to protect their wealth.

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