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Silver markets initially pulled back just a bit during the trading session on Thursday but then turned around to show signs of strength as we reached towards the 50 day EMA. We even pierced the indicator at one point but have given back some of the gains to show a bit of hesitation. Because of this, I think we will continue to see a bit of a fight, and the market still needs to be looked at with a certain amount of suspicion until we break above the $24 level.
SILVER Video 15.10.21
It will be important to pay close attention to the gold market as well because it is starting to show signs of trouble. The market is likely to continue to take it has cues from the gold market, as they are moving in tandem at the moment. Gold gave up a little bit of the initial gains as well, so the question is whether or not we can continue to see enough momentum to have this market rally? A lot of this will come down to the bond markets as well, and of course the US dollar. At this point, it looks likely that we continue to see a lot of volatility and therefore you need to be very cautious with your trading position size.
If we do turn around a break down, below the $22.50 level, it is likely that we could go looking towards the $22 level, and then eventually the $21.50 level. After that, then the bottom falls out of this market. While it has looked rather strong as of late, you can still make a huge argument for a descending channel.
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This article was originally posted on FX Empire