Silver Price Forecast – Silver Continues to Rally Overall

Silver Markets Technical Analysis

The silver market has rallied a bit during the course of the early hours on Thursday, breaking above the recent swing high. The question now is whether or not we can hang on to these gains, because we are a bit stretched and it’s obvious that there is a lot of noise here.

All things being equal, I do think this is a market that given enough time will break out to the upside and continue going much higher, but short-term pullbacks are most certainly likely at this extreme high. We have seen a lot of volatility in the early hours, and of course, silver by its very nature is much more volatile than gold and most other markets, so this is not a huge surprise.

On a pullback, I think there will be plenty of buyers out there willing to get involved, and the $30 level now sets up an interesting floor in the market as the 50-day EMA is racing towards that psychologically significant figure. On the other hand, if we can close to a fresh new high, then it’s likely that silver will continue to rally rather significantly and take off for perhaps a move all the way up to the $50 level before it’s all said and done.

Keep in mind that the Federal Reserve cutting interest rates by 50 basis points has people looking for hard assets and of course silver thrives in that environment. Furthermore, we also have the idea that it’s a bit of a knock-on effect from gold as central banks around the world continue to hoard the yellow metal. It tends to be felt in the silver markets as well.

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