Silver Price Outlook – Silver Falls Hard in Early Thursday Trading

Silver Markets Technical Analysis

The silver market has been fairly negative during the early hours on Thursday as we continue to see a lot of noisy behavior right around the 50-day EMA. At this point, the $30 level has offered a little bit of short-term support, but I think given enough time, we could very well break down below there as well.

Quite frankly, silver has underperformed gold, as you would expect, because there are a lot of questions out there when it comes to economic strength and the silver market, of course, is an industrial metal. At the same time, interest rates in the United States have been somewhat high, and that continues to work against the silver market as well. We have continued to fail right at the previous uptrend line, which is now offering resistance, so, because of this, I think you have a market where you see a lot of choppy behavior, but I think with all of this being said, pay close attention to the $28.75 level and the $31 level.

I think that is an area that we continue to trade within, but I think we favor the downside overall. Silver will certainly underperform gold going forward. So if you’re going to trade metals, that’s where you need to be looking.

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