Silver Price Forecast – Silver Continues to Find Buyers on Dips

Silver Markets Technical Analysis

Silver initially fell during the early hours on Monday, but it has of course found quite a bit of support near the $30.25 level only to turn around and show signs of life. All things being equal, this is a market that I think continues to see a lot of noisy behavior, but I also would be paying close attention to the $31.50 level. That is an area that’s been important multiple times, and therefore if we can break above there, I think it does kick off quite a bit of FOMO trading.

Remember that silver is not only a precious metal, but it’s also an industrial metal as well, so it will be influenced by inflation, but also industrial demand. It’s worth noting that we have seen PMI numbers around the world essentially tank, meaning that there are concerns about stability, so the precious metals part of silver is more likely than not going to continue to be one of the bigger drivers, as we aren’t really sure where the industrial demand is going to be in the short-term future.

If we do pull back from here, that 50-day EMA I think attracts a lot of attention, right along with the $28.50 level. I don’t have any interest in trying to short silver, but I also recognize that we are in an area that could be a major barrier to overcome, and therefore I think we may get a little bit of noise.

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