Silver Price Outlook – Silver Looks a Bit Flat on Wednesday

Silver Markets Technical Analysis

The silver market has gone back and forth during the course of the early hours of Wednesday as we are dancing just above the $30 level. This consolidation area looks like it is an attempt to form some type of basing pattern. So, you have to take what’s going on here with a little bit of a grain of salt. Keep in mind the futures markets, of course, will have some hours missing as we go into Thanksgiving in the United States on Thursday.

So, it might just be the markets being a little bit tired and cautious. We are still very much in an uptrend, and we are halfway between the 200 day EMA below and the 50 day EMA above. Speaking of the 50 day EMA, if we could break above it, then I think that allows silver to go looking towards the $35 level. I do think eventually it does rise simply because there’s so much spending going on right now by governments around the world. And of course, interest rates continue to come down. That generally helps silver.

That being said, the one thing that is causing issues, I think more than anything else, is the fact that the US dollar itself is relatively strong. Whether or not that continues to be the case will remain to be seen, but the Federal Reserve’s FOMC meeting minutes were released on Tuesday, and it suggested that the Federal Reserve might be sitting still for a while, so that could provide a little bit of a drag on the silver market specifically. Regardless, at this point, I’m not looking to short this market.

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