- Silver experienced an initial drop during the trading session but managed to reverse course with notable strength.
- The market seems to be maintaining pressure around the $32 level.
- However, the zone between $32.35 and $32.50 has proven to be a significant resistance area, and it remains unclear whether any developments have shifted this dynamic.
Short-term pullbacks are more likely than not going to continue to be buying opportunities with the $31 level being very interesting for support after all it's an area that has seen a lot of buyers at it previously and of course now we have the 50-day EMA racing towards that region. Silver is a precious metal but it's also an industrial one and it is an interesting reaction that we've had since the CPI numbers in the United States came out hotter than anticipated.
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Core CPI Hits Harder than Anticpated
They came out at 0.4% as far as the core CPI numbers are concerned, instead of the expected 0.3%. Interestingly enough, this is a situation where you have to pay close attention to Federal Reserve monetary policy because if they remain restrictive, it might be very difficult for metals to continue to go higher. Although it is worth saying that inflation typically does help metals and other commodities gain a bit. So, all things being equal, I think you've got a situation where you get a lot of push-pull. But eventually, if we can break above the $32.50 level, I do believe that silver will go looking to the $35 level over the longer term. As things stand right now, I don't really have any interest in shorting this market, but I also recognize that it's going to be very bumpy and sideways for a while.
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