Silver Price Outlook – Silver Drops After Massive Trump Win

Silver Markets Technical Analysis

The silver market was absolutely hammered during the trading session on Wednesday as we have now broken below the 50 day EMA. This is not a huge surprise because quite frankly, with a strengthening US dollar and seemingly more business friendly policies coming in the United States after the massive election victory by the Republicans taking all three branches, the idea is of course that perhaps the whole running to silver might be overdone.

Remember there is a geopolitical part to this as well and Trump, love him or hate him, is the only US president in the last 50 plus years that hasn’t started some new conflict somewhere. Perhaps some of that geopolitical concern is going to be coming out of the market. Furthermore, the market had gotten ahead of itself.

So, from a technical analysis standpoint, it’s not a huge surprise to see this market pullback, but now the question is, do we hang on to $30? Because if we don’t, the uptrend’s probably over. I’ll be watching the next day or two. It is worth noting that there is a Federal Reserve decision on Thursday, which will have a major influence on what happens with the dollar next, at least it should. But it is anticipated that there’s a 25 basis point rate cut.

That itself probably won’t move the market. It will be the press conference at the end of the day on Thursday. So, we’ll have to see how that plays out. But right now, it certainly looks like the US dollar is pretty much swallowing everything in the markets, including silver.

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