The silver market continues to see a lot of noisy behavior, but at the end of the day – this is a market that is still bullish overall. The silver market, of course, is going to remain attentive to the idea of central banks cutting rates, and of course the geopolitical issues. Furthermore, we have to keep an idea in the back of our heads that silver is an industrial metal as well.
The silver market has gone back and forth during the trading session on Thursday, as we continue to see a lot of back and forth choppy behavior. In general, this is a market that I think is paying very close attention to the $32.50 level, an area that previously had been very difficult to break above, and now I think we are trying to build up the necessary momentum to finally do that.
Keep in mind that traders have a lot to think about when it comes to silver, not the least of which, of course, would be interest rates around the world dropping. So that does put a little bit of a floor under silver, but at the same time, the market also looks at the industrial use case scenario of silver as it’s very highly sought after in a lot of green technologies.
Short-term pullbacks at this point in time, I do think have plenty of supporters underneath and I’m especially interested in the $30 level, which has now proven itself to be both support and resistance multiple times. Beyond that, the 50-day EMA sits at roughly $30.33 and is rising, so I think that also adds a little bit of validity to a potential floor.
On a daily close above the $32.50 level, I suspect at that point in time, silver might go looking toward the $35 level eventually. Either way, I don’t really have a scenario in which I would get short of silver anytime soon.
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Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.