Silver Price Forecast – Silver Markets Give Up Early Gains

Silver markets have attempted a rally during the trading session on Friday but have given up the early gains as we have seen a significant amount of downward pressure applied to the market near the $22.60 level, and I think that is going to continue to be a major issue. That being said, if we were to be able to break above the $22.60 level, that could open up fresh buying, but it certainly looks as if we may be a little bit exhausted heading into the weekend. This would not be a huge surprise, especially considering that the market had been whipped around so much by the Federal Reserve.

SILVER Video 20.12.21

Silver of course is highly sensitive to the US dollar and interest rates, but perhaps even more sensitive to the idea of the industrial demand coming out of industrial usage. With that being the case, the market may have gotten a little bit ahead of itself, and therefore it will be interesting to see how this plays out. One thing that you should keep in mind is that Friday was quadruple witching, meaning that there were a lot of different options expiring, which causes massive amounts of noise in the market.

All things been equal, it does look like we are more likely than not to see a little bit of a pullback, but I do not necessarily think that we are going to go slicing through the bottom either. The $22 level continues to be a major area of contention, and I just do not see that changing anytime soon. With this being the case, if we do break down below the $22 level, I expect a lot of volatility. Keep an eye on the US Dollar Index as it has a major negative correlation.

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

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button