Silver Price Outlook – Silver Continues to See Buyers

Silver Technical Analysis

The silver market initially pulled back just a bit during the trading session on Friday, but it seems to be finding support underneath just below the 200-day EMA. The 200-day EMA, of course, is an indicator that a lot of people will be paying close attention to. So, with that being said, I think you have to understand this is a market that has been beaten down pretty significantly, but we have been grinding higher as of late. It’s probably also worth noting that the gold market has rallied quite significantly to reach all-time highs again.

And that could, in and of itself, drag silver along with it. However, you also have to keep in mind that the silver market is also a pretty significant industrial metal. So, if there is a recession, that could work against silver. You would expect silver to lag gold a bit, but really at this point in time, I think this is also about the US dollar.

So as the US dollar shrinks, that helps silver as well. All things being equal, I do think silver goes higher. It just may underperform gold, but that’s nothing new. And short-term pullbacks should find plenty of support near the $30 level if we do get a pullback. Probably would see or expect to see a certain amount of resistance near the $32.50 level. This is a bit of a V-shaped recovery. These can be a bit tricky to trade, but as long as you find value on a short-term pullback, you probably do okay overall. I have no interest whatsoever in shorting silver.

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