Silver Price Forecast – Silver Markets Continue to Find Buyers

Silver markets have initially pulled back a bit during the trading session on Wednesday, but then turned around to show signs of strength and it looks like the market is trying to take out the 50 day EMA above. If we can break above the 50 day EMA, then the market is likely to go looking towards the $27 level next, followed by the $28 level. If and when we can finally break above the $20 level, then we can go looking towards the $30 level.

SILVER Video 11.03.21

Underneath, the $25 level will offer a significant amount of support that extends all the way down to the $24 level where the 200 day EMA is sitting at. All things been equal, this is a market that I think continues to rally not only based upon the idea of the 10 year note given back some of those yield gains, but also and perhaps more importantly, the fact that we should see stimulus coming out the United States that forces the idea of industrial demand to continue to climb in this market. Remember, silver is not just the precious metal, but it is also a significant industrial metal as well. In other words, this is all about the “reopening trade”, and perhaps even the idea of the “new green deal” that the Biden administration is trying to push through.

If we do break down below the $24 level, then I think we probably go looking towards the $22 level underneath, but I find that to be a bit unlikely at this point, as the last couple of days have shown just how much we have in the way of buyers underneath.

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