Silver Struggles at the $31 Area

NEW YORK (January 16) The silver market initially rallied during the trading session on Thursday but has given back quite a bit of the gains as we could not get over that crucial $31 level. If you’ve been following me here at FX Empire, you know I’ve been watching $31 very closely. If we can get above there, then the market could really start to go higher.

But as things stand right now, it looks like we’re still struggling with the previous uptrend line. The 50 day EMA sits just below, so that could offer a bit of support. But I think at this point in time, when I look at the precious metals arena, the gold market is probably a little bit more likely to rally than silver. However, if we turn around and break above the $31 level on a close on the daily chart, then I do think silver probably goes looking to the $32,35 cents level.

On a pullback, I would suspect $30 be important support and then after that, the 200 day EMA. Keep in mind that interest rates will have a major influence on silver, probably much more than gold and of course, we have the same situation where the silver market is also an industrial metal, and that is going to be something worth watching as well, as whether or not there’s going to be industrial demand. So silver, probably a bit of a laggard in comparison to gold at this point in time and probably remains so.

FXEmpire