Silver Price Forecast – Silver Markets Continue to Stabilize
Silver markets rallied a bit during the trading session on Friday, as we have broken above the top of the hammer from the Thursday session. This of course is a strong sign of support, but I would not get overly confident at this point due to the fact that there is so much uncertainty out there. Do not be wrong, I have no interest in shorting silver, because I do think that longer-term, we will continue to go higher. With this being said, I think that the market is likely to continue to go sideways in general, due to the fact that we are trying to form a bit of a base. That is the first thing you need to get before you get a resumption of the uptrend.
SILVER Video 02.11.20
We have stimulus to worry about, and that of course will affect the US dollar. Furthermore, we also have the presidential elections coming, so that also have a major influence on the greenback. This tends to be highly influential on what happens with silver, due to the fact that it is priced in the same US dollars. To the downside, we have plenty of support at the $22 level, the 200 day EMA at $21.25, and then of course the psychologically important $20 level.
Any of those areas could be considered value, as central banks around the world will continue to loosen monetary policy and therefore push the price of precious metals and other hard assets higher over the longer term. However, if you are placing the trade based upon that type of fundamental analysis, you should be aware the fact that gold tends to move a little cleaner then silver when it comes to that trade.
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This article was originally posted on FX Empire
