Silver Price Forecast – Silver Struggles to Impress

Silver Markets Technical Analysis

Silver was somewhat sluggish in the early hours of Monday, which of course was Martin Luther King Jr. holiday. So, the futures markets had limited hours. So, with that being the case, it is not a huge surprise to see that silver has done very little. That being said, it’s probably worth noting that the silver market is hanging around the 50-day EMA and in an area in the form of $30 that has been important multiple times in the past. So, the question is, can we find support at $30 to turn things around?

If we were to break down below the $30 level, then I think you get a shot at the silver market going down to the 200-day EMA and then down to the $28.75 level. If we can turn around and rally and break above the $31 level, then it’s possible that the $32.35 level could be targeted. But at this point in time, we would need to see something jump into the market psyche in order to make people want to start owning silver so heavily.

Quite frankly, interest rates around the world continue to be an issue, but with the Federal Reserve likely to stay a little bit tighter for longer, that is probably the biggest problem silver has right now. Furthermore, though, if we do get a global slowdown, it’s likely that the demand for silver could be somewhat sluggish also due to the industrial part of the equation. If I were to buy precious metals, I would prefer gold. I think silver will underperform at this point, although it’s not necessarily a short at this point either.

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