Silver Price Outlook – Silver Continues to See Volatility

Silver Markets Technical Analysis

The silver market initially tried to rally a bit during the early hours on Monday, but then gave back the gains, showing signs of hesitation. The market pulling back at this juncture is not a huge surprise as we continue to see a lot of back and forth action and I think the $30 level underneath will be major support. After all, it’s a large round psychologically significant figure, and an area that I think a lot of people will pay attention to via the options market. On the other hand, if we do break out to the upside, breaking above the 50-day EMA on a daily close opens up the possibility of a move to the $33 level.

All things being equal, I do think that’s probably more likely than not what happens because the market will eventually get a little bit of knock on effect from the gold market, which although negative on Monday has been very positive as of late, the silver market of course is not only a precious metal, but it’s an industrial metal as well. And with that being said, I think the market is likely to play upon a lot of fiscal concerns for governments around the world, as well as a lot of concerns when it comes to geopolitics. Those aren’t as strong in the silver market, but they are part of the overall picture. As things stand right now, this still looks like a buy on the dips market.

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