Silver Price Forecast – Silver Continues to See Buyers on Dips

Silver Markets Technical Analysis

Silver has gone back and forth in electronic trading on Thursday, which I wouldn’t read too much into, mainly due to the fact that it was Independence Day in the United States. So of course, liquidity was a major issue.

Futures markets were closed most of the day, although overnight trading was available. With that being said, I’ll be watching quite closely the silver market during the Friday session as we have non-farm payroll announcements coming out in the United States. That means we could drop from here, but I think that ends up being a buying opportunity. The $30 level would be the first support level, but underneath there we have the 50-day EMA, which is closer to roughly $29.25.

Whether or not we get all the way down there remains to be seen, but I do think you have a situation where it’s going to be all about the US dollar and the reaction to the jobs number. If the jobs number comes out stronger than anticipated, that could strengthen the US dollar and that could very well work against silver, at least temporarily. But Wall Street’s pretty convinced, especially after yesterday’s press conference with Jerome Powell, that an interest rate cut is coming and therefore they’ll continue to try to inflate commodities.

Now really at this point in time, I think you have to understand that the dynamic of lower dollar, higher silver just kind of falls in line with everything else. I don’t think there’s anything magical about this market other than it’s priced in US dollars. So, we’ll have to wait and see. If we were to turn around and break down below $28.50, and I don’t think we do that on Friday, then this market could really start to unravel. But I think we’re more likely to see $32 challenged over the next several weeks than a breakdown like that.

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