Silver Weekly Forecast: 50-Week EMA Supports $60–$70 Range

Silver Technical Analysis

The silver market has been positive for the week, although it should probably be noted that it was also very noisy. The 50-week EMA seems to be offering a bit of support, so that is worth paying close attention to.

The market has been stuck between the $70 ceiling and the $60 floor for some time. This past week, with several central banks, will have been pivotal in figuring out how silver holds up longer term.

Positive Outlook

I do like the idea of holding silver.

After all, there is a lot of demand out there for silver at the moment from the electrification of the economy and all of that. Ultimately, silver is a metal that I do like.

But with high interest rates, as we’ve seen, it works against these non-yielding assets because traders can earn a return by simply owning a piece of paper, or really just digital paper. Storage of silver is a major problem for those trying to trade in huge physical quantities.

Of course, the correlation between higher rates and lower silver prices has held quite nicely, which has been driven by the situation with oil.

That being said, longer term, I do believe that silver goes much higher, and I suspect it’s probably only a matter of time before that happens. But that’s more in the thesis of a longer-term investment. Right now, it looks like we’re just happy to hang out in the same $10 range. This would be a return to what we have been seeing for some time now.

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