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Silver markets initially rallied during the trading session on Monday but has given up the gains to show signs of exhaustion as we are sitting around the $28 level. Ultimately, this is a market that needs to come to grips with the idea of industrial demand and of course what is going on with the US dollar. That being said, the market will move counter to what the dollars doing under most circumstances, so if the US dollar search the fall, it could make a certain amount of sense that silver would get a bid. Furthermore, both silver traders are looking at the market through the prism of the reopening trade and increased industrial demand.
SILVER Video 01.06.21
The overall industrial demand should pick up as companies and economies around the world continue to reopen, but there seems to be a lot of massive resistance between $28 and $30 that is difficult to break above. It should be noted that Monday was Memorial Day, which of course means that the markets were only open for a few hours here and there. Nonetheless, we are in an uptrend and have been for some time. Because of this, I believe that dips will continue to be bought and that the 50 day EMA which currently sits just below the $27 level, will also attract a certain amount of attention.
With that in mind, I like the idea of taking advantage of the overall uptrend, but I also recognize that pullbacks at this point will be thought of as value that you can take advantage of. With this being the case, I like the idea of finding value and jumping all over it when I get a chance.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire