Silver Price Forecast Video for 01-02-2024

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Silver Markets Technical Analysis

Silver has initially pulled back just a bit during the trading session, but it does look like it’s trying to turn around a bit to show signs of life. With that being the case, I think you’ve got a situation where if we can break above the previous session’s highs, we could go looking to the $23.50 level. Keep in mind that the FOMC meeting is later during the day on Wednesday, and a lot of people will be paying close attention to the idea that the FOMC may or may not signal a looser monetary policy. If that’s the case, silver will likely continue to rally. On the other hand, if we fall from here, the $22 level is likely your major floor. After all, $22 is a major support level and is the bottom of what I suspect could be the overall trend for the year. On the upside, on top of that, the trend region could be $26.

All things being equal, if we do rally from here, the $23.50 level will end up being a target, followed by the $24.50 level. Keep in mind that silver is also an industrial metal, so it’s not just a matter of interest rates; it’s also a matter of whether or not there is going to be enough industrial demand out there for silver. Interest rates, industrial use casings, geopolitical concerns, all of these can come into the picture and lift silver.

At this point, I think any dip ends up being more or less a buy on the dip type of value proposition, just as it has been multiple times on any significant fall. If we were to break down below the $22 level, and I think that would be very unlikely at this point, we could find quite a bit of support at $21 as well. With this, I remain somewhat bullish on silver but would like to find some type of value that I can get involved with. Silver is a very volatile market, so keep your position size reasonable in this uncertain environment.

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