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Silver Price Forecast – Silver Stretches Toward The $24 Level

Silver has rallied slightly during the trading session on Tuesday to reach the $24 level, an area that of course a lot of people will pay close attention to as it is a large, round, psychologically significant figure, and an area where we have seen a little bit of resistance, but we have also broken through their multiple times. At this point, if we can break above the $24.25 level, then silver could really start to take off. That being said, remember that we have seen a massive repudiation of buying at the $26 level, which will of course come into the picture, as a certain amount of “market memory” will come into the picture, showing that the market will almost certainly react in this area.

That being said, I think there’s a situation where every time we dip, there should be buyers willing to get involved, as they can pick up “cheap silver.” Remember that silver is highly sensitive to the interest rate situation in the bond markets, most specifically the US. The 10 year yield is one that a lot of people pay close attention to, and if those yields continue to drop, it’s very likely that silver will continue to see a lot of upward momentum. After all, traders will do what they can to protect wealth as lower interest rates make bonds less valuable, and therefore precious metal suddenly get a little bit of a 2nd look.

Looking at the industrial demand side of silver, a lot of people put heavy weight on the idea of new “green technology” demand coming into the picture to put silver much more in demand. Furthermore, we have to ask whether or not the market is going to continue to see other industrial demand, which of course silver has plenty of. In general, this is a situation where I think you’re looking for dips as buying opportunities with the 200-Day EMA as support, preceded by the 50-Day EMA. I have no interest in shorting silver anytime soon, but I do recognize that as we head into the holiday season, liquidity could cause a lot of volatility.

Source: fxempire