Silver Price Forecast – Silver Continues to See Strength on Thursday

Silver Markets Technical Analysis

The silver market rallied just a bit during the early hours on Thursday as the silver market is trying to get back some of that momentum that it had previously. That being said, let’s be honest here, silver had gotten far too ahead of itself, so it does make a certain amount of sense that we have a little bit of a pullback like we did over the last 24 hours. Whether or not that sticks remains to be seen, but even if we do fall from here, I think there’s plenty of support down at the $32.50 level.

The $32.50 level is an area that a lot of people will be paying attention to, as it was the previous swing high, so therefore one would have to assume there’s a certain amount of market memory involved. The 50-day EMA is also racing towards that area, so it all kind of comes together for a floor in the market. Silver, of course, is highly sensitive to interest rates, and interest rates have been all over the place, but we also have a lot of geopolitical concerns, and of course we have central banks around the world cutting rates.

So that does have a little bit of an effect here. Furthermore, you have to keep an eye on the industrial demand side of silver, as it is a little bit different than gold in that aspect. And of course, this is a much more volatile contract and a bigger one. So, you have to be cautious with your position size. Nonetheless, this all points to higher pricing. And I do think that it is probably only a matter of time before we reach the $35 level.

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