Silver Price Forecast – Silver Continues to Dance Around $24

Silver Price Forecast Video for 19.12.23

Silver Markets Technical Analysis

Silver has gone back and forth during the course of the trading session on Monday, as we are hanging around the $24 level, an area that has been very important for quite some time. Ultimately, silver has recently seen a lot of volatility, but it looks like we are trying to recover based perhaps mainly on the idea that the Federal Reserve is going to loosen up monetary policy. At the latest monetary policy meeting, the “top plot” showed several cuts for 2024, and therefore the US dollar should lose a little bit of value. If that’s going to be the case, that certainly helps precious metals.

Underneath, the 50-Day EMA is offering a little bit of support and is rising. All things being equal, the market is likely to continue to see that as a short-term floor in the market, but if we were to break down below there, the market is more likely than not going to continue to drop down to the 200-Day EMA. On the other hand, if we were to turn around and take out the highs of the Friday session, it could send silver looking toward the $26 level above.

That’s an area that has been a major resistance barrier in the past, and therefore I think it’s an area that will be difficult to overcome. If we were to break above that level, it would obviously be extraordinarily bullish, but I don’t expect to see that happen anytime soon. After all, we have seen a massive selloff from the high recently, and therefore it’s likely that we will struggle to get above there. That doesn’t mean we can’t, but it does make sense that the $26 level will be very difficult to get beyond.

All of this being said, you will need to keep an eye on the 10 year yield in the United States, because yields do have a negative correlation with silver most of the time, and that can be a bit of a leading indicator as to where we could go next. With that being said, one eye on the 10 year yield and another on the silver market makes quite a bit of sense.

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