Silver Price Forecast – Silver Markets Continue Same Dance

Silver markets have initially pulled back a bit during the trading session on Wednesday but have also turned around to show signs of strength again. Ultimately, the $28 level is a bit of a major anchor for price, as people continue to see this as a market that we should be buying dips and longer term. This does not necessarily mean that we are going to break out imminently, but it does look like we are going to try to get to the $30 level above.

SILVER Video 03.06.21

The 50 day EMA continues to grind higher, as it is sitting just below the $27 level. All things been equal, this is a market that I think continues to be very choppy but favors the upside with the 50 day EMA offering a significant amount of “dynamic support.” The silver markets are also going to continue to move based upon a shrinking US dollar, so pay close attention to the US Dollar Index as it could give you an inverse correlated type of signal. Beyond that, we also have to think about the potential of industrial use case scenario for silver, as the reopening trade should bring in quite a bit more in the way of demand for the metal.

At this point, it is worth noting that the market has broken above $30 before, and as a result it is worth paying attention to because we have seen silver take off towards the $50 level a couple of times in the past. Obviously, this is a longer-term call, but it certainly looks as if we are trying to break through that barrier. Once we do, this is a market that will accelerate quite rapidly.

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