Silver Price Forecast – Silver Continues to See Support

Silver Markets Technical Analysis

The silver market found quite a bit of support during the trading session on Thursday again, as we are hanging around the $30.50 level, and perhaps more importantly, have stayed above the $30 level. The 50-day EMA is in the same neighborhood, so I think it does make a certain amount of sense that the market has bounced, and I would fully anticipate that it should continue to do so given enough time.

CPI numbers came out a little hotter than anticipated during the early hours on Thursday, so that could have an effect as well. But really, at this point, I think you’ve got a scenario where there are a lot of cross currents because we also had higher than expected unemployment claims coming out of the United States. So, you take the good with the bad.

The question now is whether or not demand for silver will start to pick up and with central banks elucidating monetary policy, one would assume that inflation alone would probably come in and pick this thing up. But you also have to question whether or not there will be more people looking to invest in businesses and put money to work, which generally is good for silver. Silver is also an industrial metal. It’s not just a precious metal.

A lot of people forget that. With this being said, the technical analysis does suggest that the $30 level should continue to be supported. So, I think you’re still somewhat in a buy on the dip scenario. But if we were to break down below the $29.70 level, then I think silver might be in a little bit more trouble.

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