Silver markets have been very choppy during the trading session on Monday, and even attempted to break out to the upside. Having said that, the $23 level has offered a bit of a barrier yet again. Ultimately, silver is a little bit different than gold, if for no other reason than it is a thinner market. While the strengthening or weakening US dollar certainly has an influence on where we go next, the reality is that right now this is a market that continues to be weighed upon by interest rates and the greenback.
SILVER Video 05.10.21
Furthermore, we have to worry about industrial demand, because quite frankly something is not quite right in this market due to the fact that while a lot of commodities have shown massive amounts of demand, so are to simply has not followed suit. In this environment, if we were to break below the $22 level again, I think it is very likely that we continue to go lower, perhaps opening up a move down to the $20 level. On the other hand, if we were to turn around a breakout above the $23 level, then it is possible we could go looking towards the 50 day EMA, maybe even the $24 level.
At this point, I think it is really not until we break above the $24 level that it is possible to get long of this market with any decent size. At this point, that does not look very likely, and of course we will have to pay close attention to those Bond yields in America, because quite frankly if you can earn a return holding paper instead of storing silver, that in and of itself might be reason to drive this market lower.
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This article was originally posted on FX Empire
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Source : https://finance.yahoo.com/news/silver-price-forecast-silver-markets-160053760.html535