Silver Price Forecast: Silver Continues to Tread Water

NEW YORK (January 2) Silver rallied early during the first trading session of the year but has also given up some of the gains. So, it’ll be interesting to see how this plays out as the market is trying to come to grips with new liquidity. Ultimately, I do think that we are closer to the middle of the overall range than anything else. So, I think you have to look at this under that prism.

From a longer term standpoint. The 50 day EMA sits just below and should continue to offer support, but even below there, I think the $23.25 level, basically where the 200 day EMA sits, should also be plenty of support. That being said, there is noise just above, and I think it’s a bit of a grind, between now and the jobs number on Friday. Pay attention to the bond market, and interest rates in the 10-year yield dropping would certainly help silver, but at the same time, you could also make an argument that a strong jobs number may help silver as well, as it could push the idea of industrial demand coming back into the picture. Either way, we are essentially at fair value currently, as we are between the extreme low of $22 and the extreme high of $26, basically sitting right in the middle.

With that being the case, I think you have to wait for some type of impulsive candlestick in order to show momentum and then simply follow that. I do favor the upside at the moment, but I also recognize that a pullback could be in the cards. Silver will be thought of as a riskier investment if we get a sudden risk-off event, but right now it looks like Silver is doing everything it can to essentially tread water.

Ultimately, I believe this is a market that you need to be cautious with as the choppiness will almost certainly continue. With this being the case, I think it is a cautious market but also a market that should provide nice opportunities if we reach the outer edges of the range that we have formed.

FXEmpire