As soon as the Thursday session began, silver markets gapped upward before launching upward in a single motion due to the dismal U.S. GDP results. In a weak economy, it is believed that the Federal Reserve will find it difficult to raise interest rates. However, given that inflation is still raging, this is more than likely going to be a false pretense. In fact, it’s impossible to think of a scenario in which the Federal Reserve doesn’t increase interest rates. This means that this surge will probably wane, especially close to the $20.00 mark.
Additionally, you can see on this chart that the 50 Day EMA is positioned slightly above and falling. As a result, I believe it will likely only be a matter of time until dynamic resistance enters the scene and pulls the silver market back down. Having said that, this could serve better as a trade quotation for the upcoming week.
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You can see that we have been in a downturn for a while, therefore it stands to reason that we will eventually have some interest in shorting this market once more. Pay close attention to the US Dollar Index because if it starts to rise, silver may suffer as a result, which is highly likely to happen. It’s also important to note that we have already begun to give back some of the session’s spectacular gains, suggesting that we may be losing some momentum. In any case, silver is not one of my preferred industrial metals.