Silver markets have rallied a bit during the trading session on Monday as we continue to see people jumping into the precious metals to protect wealth. At this point, it looks as if we are going to continue to see people get away from fiat currencies, which makes sense considering how much quantitative easing and stimulus there is around the world. It is not just a situation where it is the United States only, quite frankly it is everywhere. If that is going to end up being the case, then people will continue to try to protect their wealth in multiple currencies. In other words, silver will continue to gain, not just against the US dollar.
SILVER Video 29.12.20
What is worth paying attention to is that the $27 level has offered a lot of selling, and therefore it makes sense that it has offered a bit of resistance. I think if we can break through there, then the market is likely to go looking towards the $20 level, possibly even the $30 level over the longer term. This does not mean that is going to be easy to get up there, but at this point in time it is likely that we will continue to see buyers on dips. To the downside, I think that the $25 level will offer a certain amount of support, especially near the 50 day EMA.
That being said, we are in an uptrend longer term and therefore I think this bottoming pattern will continue to send this market higher as well. If we can finally break above the $30 level, that could send silver racing towards the $50 level as it has done historically a couple of times already.
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This article was originally posted on FX Empire