Silver Price Forecast – Silver Markets Drift Lower to Close Out Week

Christopher Lewis
·1-min read

Silver markets initially tried to rally during the trading session, reaching towards the $25 level before pulling back. The 50 day EMA is right in the middle of the candlestick, and therefore think the market is simply going to bounce back and forth. Ultimately, this is a market that I think is moving more or less on the stimulus hopes and fears, and therefore as we do not have any type of clarity at this point, silver will continue to flounder.

SILVER Video 26.10.20

The US dollar has been picking up a little bit of strength later in the day on Friday, so that is also part of what we should be paying attention to, and therefore I think that offers more of a headwind to silver. I do not necessarily think that silver is going to collapse, but I certainly see a possibility that we are going to reach towards the $24 level, perhaps even down to the $22 level. Ultimately, the 200 day EMA also offers plenty of support so I think there are plenty of reasons to think eventually the buyers will return. I like the look at silver through the prism of a longer-term market, and quite frankly right now you should be looking for value.

We have not had a major move, but I do think that if you are patient enough you should get plenty of opportunity to take advantage of “cheap silver.” The longer-term cyclicality of course is something that you should pay attention to because central banks continue to flood the markets with cheap liquidity.

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

This article was originally posted on FX Empire

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