Silver Price Forecast – Silver Continues to Threaten a Move Higher

Silver Markets Technical Analysis

Silver has initially fallen just a touch in the early hours on Tuesday only to turn around and show signs of strength. It’s worth noting that there is a big pocket of resistance just above, that extends to the $32.35 level. While silver does look extraordinarily resilient at the moment, the reality is that it may not be that easy to get to the $32.35 level.

It’s also worth noting that silver has the reputation of being extraordinarily noisy, and I do think that plays out here. I just don’t see a situation where silver has an easy path higher. This is not to say that it won’t go higher. Quite frankly, I think it eventually does, mainly because gold is going to continue to grind to the upside as it will drag silver right along with it. Industrial demand is certainly a major factor here, so that might be part of why silver is a laggard, but also, silver is not as much of a precious metal trade as gold is anymore. And I do think that is something that we need to keep in mind.

Buying on the dips more likely than not will end up being buying opportunities for longer term traders as well as short term scalpers. The 50 day EMA sits right around the $30.65 level, with the $31 level also offering support.

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