At the end of the day, the market is likely to remain volatile, which is not surprising given the nature of silver as a highly volatile asset.
- Silver has been a volatile market, and the trading session on Friday saw a complete reversal after it initially peaked above the important $26 level.
- The inability to break through the $26 level suggests that the market is far from getting that massive breakout that many traders have been looking for.
- This highlights the importance of paying close attention to the overall risk appetite in the market, which plays a crucial role in determining the demand for silver.
- Keep in mind that the economic outlook going forward is murky at best, so not only will silver be volatile, but most markets will do the same.
Silver is not just a precious metal but also an industrial metal, and its demand is largely driven by industrial use. With the global economy expected to slow down, traders are focusing on the impact this could have on the industrial use of silver, which could cause major issues. This is something that traders need to keep in mind as it could play a crucial role in determining the direction of silver prices soon.
The $25 level is likely to act as a support level as it was a previous resistance barrier and has significant psychological significance as a large, round figure. If silver breaks below this level, the $24 level is expected to provide support, as it has seen significant action recently. These levels are likely to attract buyers looking for value in the market and could help to stabilize silver prices.
Despite the recent reversal, there is still a lot of interest in silver from a wealth preservation standpoint. Many traders still view silver as a safe haven asset that can protect against inflation and market volatility. This is likely to continue driving demand for silver, especially as the global economy faces uncertainty and investors look for ways to protect their wealth.
At the end of the day, the market is likely to remain volatile, which is not surprising given the nature of silver as a highly volatile asset. Traders need to be cautious and pay close attention to overall market conditions, including risk appetite and industrial demand, to make informed decisions about trading silver. As always, it is important to be patient and wait for opportunities to present themselves, rather than trying to force a trade in an unpredictable market.
Ready to trade our Forex daily forecast? We’ve shortlisted the best Forex brokers in the industry for you.