Silver Price Forecast – Silver Markets Have Recovered Into the Weekend

Christopher Lewis
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Silver markets have rallied a bit during the trading session on Friday to show signs of life heading into the weekend, but we still see a significant amount of resistance just above there it probably comes into the picture. With that being the case, I think silver is more than likely going to break down, but you need to pay close attention to the US Dollar Index at the very least, because it has such a strong negative correlation. Furthermore, you have to pay attention to interest rates in America, because if they continue to rally, that makes holding silver much more expensive than it does to hold bonds.

SILVER Video 04.10.21

The next question of course is going to be the industrial demand part of the equation, and whether or not there is going to be that demand going forward. After all, the silver markets are highly industrial as well as acting as a precious metal, so all of that comes into the picture. Nonetheless, we had pierced the $22 level, so if we fall below that level again, I think the market continues to go much lower, perhaps reaching towards the $20 level over the longer term.

As far as buying is concerned, there might be a short-term trade above the $23 level, but there is going to be a significant amount of resistance at the $24 level as well, as we had broken down from that area. If we were to somehow break above that level, then it would become more of a buy-and-hold situation, but we are nowhere near that right now. Expect volatility, but I still look for signs of exhaustion to sell into.

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This article was originally posted on FX Empire

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