- Silver continues to show plenty of support beneath it and seems to be going sideways, waiting to gather enough momentum to continue its overall uptrend.
- The $25 level is a key area that offers support, as it is a large, round, psychologically significant figure. Any breakdown below this level could lead to further support at the 50-Day EMA, which is currently sitting around the $24.50 region.
- Additionally, the $24 level is also an important support level, as it was the epicenter of massive consolidation at the end of last year going into early this year.
- The silver market is showing that short-term pullbacks continue to offer plenty of value, and with concerns about wealth preservation continuing to be a major theme, investors remain interested in silver.
On the upside, the $26.50 level will continue to be a resistance point. However, if the market breaks above this level, it opens the possibility of a move to the $27.50 level. The market has been noisy, and caution should be taken with position sizing. Short-term pullbacks offer buying opportunities, but investors should not jump into the market with a major position right away, as silver is a volatile commodity.
Despite the volatility, the massive bullish momentum in the silver market makes it unattractive for shorting. As the US dollar typically has a negative correlation with silver, a weaker dollar could further drive the metal's value up. Ultimately, silver continues to attract attention, and it is just a matter of finding value and taking advantage of it.
The Recent Surge in Inflation Has Been a Key Driver for the Market
The recent surge in inflation has been a key driver for the silver market. As investors look to protect their wealth from the erosion of inflation, silver is seen as a safe-haven asset. Precious metal is often used for wealth preservation, as it has been for centuries, and it will continue to be used in this manner if there are concerns around global economic movements.
Silver's use in industrial applications is another key driver for its value. Silver is used in electronics, solar panels, and medical equipment, among other things.
Looking ahead, the silver market continues to show support at key levels, with short-term pullbacks offering buying opportunities. While caution should be taken with position sizing due to the market's volatility, the massive bullish momentum in the market makes it an unattractive market for shorting. With concerns around wealth preservation and the increasing demand for silver in industrial applications, the metal is expected to remain an attractive investment option.
Ready to trade our Forex daily forecast? We’ve shortlisted the best FX trading platform in the industry for you.