Silver Price Forecast – Silver Continues to Struggle With $30

Silver Markets Technical Analysis

The silver market rallied slightly during the early hours on Thursday, but still sits below the crucial $30 level. With this, I think it’s obvious that the $30 level, based on previous action, is going to continue to be crucial. With this, I think if we can overcome the $30,50 cents level, then we have a real shot at a recovery. However, interest rates in America continue to climb, and that, of course, is a major issue.

In this environment with higher interest rates, it’s difficult for silver to really take off because you get paid to hang on to paper instead of actual silver and of course, silver is an industrial metal. So, the idea is, of course, that if financial conditions are tight, there will be less demand for industrial metals. Whether or not that’s true remains to be seen. But the technical analysis cannot be ignored in this market, as although we have bounced from the 200 day EMA, the $30 level is an area that’s been important.

We are not only sitting below there, but we’re sitting below a previous uptrend line. So, I think we’ve got a couple of important trading sessions over the next couple of weeks that will determine which direction we go. If we break down below $28.75, that could send silver tumbling.

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