Silver Price Forecast – Silver Continues to Look Strong

Silver Markets Technical Analysis

The silver market has broken to the upside during the trading session on Thursday, as the consumer price index numbers in the United States came out much weaker than anticipated. This has people hoping and perhaps even believing that the Federal Reserve is going to cut rates later this year, and that has people excited for risk appetite. With that being the case, it’s just a continuation of the very bullish behavior that we had seen in the silver market. And now it looks like we could threaten the recent highs near the $32.50 level.

We certainly saw a huge surge initially after that announcement came out cooler than anticipated. So, it’ll be interesting to see if we get any follow through. Short term pullbacks at this point in time should continue to be thought of as buying opportunities, and I think the $31 level will be the first support level. After that we have the $30 level, which of course is a large, round, psychologically significant figure which is starting to attract the attention of the 50 day EMA.

All things being equal, I think it is becoming increasingly obvious that silver is not a market you can sell, and therefore you have to look for buying opportunities, perhaps on dips, on short term charts, or maybe just a fresh new high. Silver, of course, is highly sensitive to interest rates, which obviously are dropping and therefore it frees silver to go higher. Also, there’s the industrial demand aspect of silver. So don’t forget that a lot of people will be looking to whether or not the Fed will stimulate the economy.

For a look at all of today’s economic events, check out our economic calendar.