Silver Price Forecast Video for 05-01-2024
Silver Markets Technical Analysis
Silver has done very little during the early hours on Thursday as we are trying to sort out which direction we are ready to head in. This is a market that I think continues to see a lot of crosswinds out there that will continue to make silver a very noisy affair. This is a market that doesn’t necessarily need that much in the way of noise to make it difficult to trade, so this is something that you always need to keep in the back of your mind.
After all, you have to pay close attention to the interest rates in America, which of course has a major influence on the precious metals sector in general. Beyond that, silver also has to pay close attention to industrial demand, something that may or may not be waning. And then after that, you have to understand that thesilver marketis inherently volatile to begin with, so a certain amount of caution is necessary. You could probably say that about silver during most time frames, but the beginning of the year will have its own challenges.
All of that being said, I do believe that we are in the midst of a major range with the $22 level underneath offering significant support, while the $26 level above offers rather stringent resistance. With this being said, I think as we are closer to the bottom than the top, it’ll be interesting to see how Friday pans out with the non-farm payroll announcement. And between now and then, the market might be a bit hesitant to move.
The non-farm payroll announcement will have a major impact on bond markets in America, and that in turn will have a knock-on effect over here. The closer we get to the $22 level, the more likely I am to step in and start buying on some type of bounce. Regardless, I would not be buying a huge position because quite frankly silver is just far too dangerous to get overly exposed to. Silver should be part of your portfolio, but not a huge portion of it.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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