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Silver Price Forecast – Silver Attempts to Rally Again

Silver displayed some volatility early in Wednesday’s trading session, initially gapping lower only to reverse course and exhibit signs of resilience.

Silver Markets Technical Analysis

In the grander context, I believe this market holds the potential to gradually edge towards the $24 level, and perhaps even surpass it. Nevertheless, it’s crucial to recognize that this specific market is susceptible to sporadic behavior, with the added complexity of being silver.

Conversely, should we witness a breakdown below the moving averages, there is a potential downside towards the $22 level, which previously served as a rebound point following lower-than-anticipated inflation figures in the United States. This implies that there remains optimism among market participants concerning the Federal Reserve’s potential adoption of a more accommodative monetary policy. However, such a shift in the short term appears improbable.

The prevailing hope revolves around the Federal Reserve at least considering adjustments to its monetary policy, providing cause for celebration among traders. The long-term outcome remains uncertain, and it’s essential to note that the silver market typically exhibits a negative correlation with the US dollar, a factor that demands attention.

For the time being, I have no inclination to partake in silver selling activities, and I believe that pullbacks could present viable buying opportunities. Nevertheless, one must exercise caution when entering this market. Additionally, it’s imperative to bear in mind that Thursday marks Thanksgiving, which means this week’s trading will be abbreviated.

Ultimately, silver’s recent performance has been marked by substantial fluctuations, but the potential for an upward trajectory towards the $24 mark continues. The volatile nature of the silver market and its relationship with the US dollar make it a market where caution is of vital importance. While the idea of potential buying opportunities during pullbacks remains. As Thanksgiving approaches, market participants should anticipate subdued trading conditions in the days ahead.

Source: Fxempire