Silver Price Forecast – Silver Await Stimulus

Silver markets have rallied significantly during the trading session early on Wednesday but gave back early gains above the $25 level. By doing so, the market is likely to continue seeing buying pressure given enough time, especially as we await the stimulus talks which seem to be getting a little bit more amicable in the United States. If the stimulus talks come through, and perhaps the Federal Reserve jumps on board later in the trading session, it is likely that silver will go looking towards the $26 level above. By doing so, it opens up the possibility of a move all the way to the $20 level.

SILVER Video 17.12.20

In the short term, pullback should continue to offer buying opportunities in a market that is obviously consolidating. However, it is worth noting that we have formed a bit of a “double bottom” near the $22 level, which so far has not seen much of a serious attempt to break down below it. Because of this, I think that dips continue to offer opportunities for traders to take advantage of value, as the US dollar is most certainly on the back foot in general. If we get enough stimulus, people will start to price in the idea of demand picking up when it comes to silver from an industrial use as well.

Pay attention to gold, it certainly has a certain amount of influence in this market as well, so it is worth noting that if and when we see the US dollar fall, that also will be worth paying attention to on the US Dollar Index near the 88 handle.

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