Silver Price Forecast – Silver Looks Tired on Friday

Silver Markets Technical Analysis

The silver market fell pretty significantly during the early hours on Friday, dropping about 1.5% by the time New York gets on board. Because of this, we are now finding the silver market sitting on top of the 50-day EMA. If we can break down below there, then we could go as low as the 200-day EMA. We just failed at the previous uptrend line, so it’ll be interesting to see if that continues to offer resistance as it has over the last couple of weeks. Keep in mind that silver is not gold, and therefore if interest rates start to rally a bit, that will cause issues with silver.

Anything below the $28.75 level would be disastrous, but we’re nowhere near there at the moment and I think really what we’re seeing is the market pulling back into the previous noisy consolidation. I’m not a big fan of silver anyway. Quite frankly, if I want to own precious metals, I will be an owner of gold, which looks like it’s trying to do everything it can to break out to the upside.

So, it’s a major contrast in momentum, although admittedly gold did pull back a little bit early on Friday, it still looks stronger overall. So, at the end of the day, if you want to own metals, the clear winner is gold, not silver, as silver has to worry about industrial demand as well. So it’s a little bit more of a mixed bag with the economy, seemingly a little sluggish around the world.

For a look at all of today’s economic events, check out our economic calendar.