Silver has jumped at the open on Friday, as we are possibly seeing a bit of short covering.
The silver market has gapped pretty significantly on Friday, as I think there's been some short covering. Bond markets continue to be a major driver of where we go next, and I think we have a bit of an issue here because what happens is that we have a scenario where, looking at the chart just by itself, could give you the idea that perhaps the market is about to explode to the upside. And while that's possible, the reality is that traders could simply be covering shorts. After all, the market is going to have to deal with some type of headlines coming out over the weekends.
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And of course, Friday has already seen the Iranians suggest that perhaps we're closer to a deal, but all it would take is bad news over the weekend to have this thing gap lower at the open on Monday. So, it'll be interesting to see how this plays out. We do find ourselves at the 200-day EMA, which, of course, is an indicator that a lot of people will watch very closely. But if we could break above the $70 level, then we could see this market looking to the 50-day EMA just under the $75 level.
Longer-Term Bullishness
Longer term, I look at this as a market that's trying to form some type of consolidation range between maybe $60 on the bottom and $90 on the top. Even longer term than that, I do think silver goes much higher. Quite frankly, we have a major problem with a lack of supply when it comes to the demand that will be needed for the electrification and AI data centers.
noise out there and demand. Really, at this point, I like silver. I don't like shorting it, but I would not read too much into this move other than people in specifically Asia probably wanted to get out ahead of the weekend. So, we'll see how this plays out. If we do break to the upside and clear the $70 level, we probably have several days of bullish pressure.
So, I don't feel the need to get aggressive here. Monday Open will be greatly influenced by what we hear or do not hear over the weekend.
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