Silver Forecast: Looking To Rally Even More?

(MENAFN- Daily Forex)

• The silver market exhibited a slight retreat in the early stages of Thursday's trading session, only to swiftly reverse course and display renewed momentum. Presently, the focus is on breaching the crucial $24 level.
• A successful breach above this threshold would likely pave the way for a potential ascent to the $25 level.
• It seems increasingly probable that this milestone is within reach, although silver, in its typical fashion, is not immune to market fluctuations and commotion.

Forex Brokers We Recommend in Your Region 1 Read full review Get Started

It is imperative to bear in mind the influential role that interest rate markets can play in silver's price movements. Historically, fluctuations in interest rates have had the capacity to move silver's trajectory significantly. A resurgence in interest rates could cast a shadow of negativity over silver's prospects. Moreover, our current positioning finds us in proximity to a zone that has previously posed considerable resistance, adding another layer of complexity to the silver market's outlook. Breaking above this level would signify a breakthrough and potentially cause a substantial uptrend for silver. In this environment, it is likely that we will see a lot of FOMO trading in the silver pits Prudent

Another essential factor to monitor is the concept of industrial demand. Should we indeed find ourselves on the cusp of an economic recession, the demand for silver in industrial applications may diminish, exerting downward pressure on the market. Conversely, silver can also serve as a haven asset, much like other precious metals, although I must confess a personal preference for gold in such scenarios. The ever-evolving landscape of geopolitics continues to exert its influence on various markets, and any escalation in geopolitical tensions could contribute to silver's move higher, as traders are looking to protect wealth in an uncertain environment.

Last but not least, it is critical to keep a watchful eye on the performance of the US dollar. A strengthening US dollar typically works against the value of silver. However, in the event that individuals turn to silver as a safe-haven asset, both assets could conceivably rise concurrently. Regardless of the prevailing circumstances, it is evident that we are witnessing an attempt by silver to break out of its current range. In this environment, potential short-term pullbacks toward the 200-Day Exponential Moving Average could present attractive buying opportunities. As always, exercise prudence in managing your position size to navigate the evolving dynamics of the silver market effectively.

Ready to trade our Forex daily forecast ? We've shortlisted the best currency trading platforms in the industry for you.

MENAFN17112023000131011023ID1107448122