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Silver Price Forecast – Silver Markets Break Barrier

By:
Christopher Lewis
Published: Aug 31, 2020, 15:39 GMT+00:00

Silver markets broke the $28 level during the trading session on Monday, breaking a short-term resistance barrier.

Silver

Silver markets have rallied rather significantly during the trading session on Monday, slamming through the $28 level, an area that has been significant resistance. Ultimately, I do think that it is only a matter of time before the market goes looking towards the $30 level again, perhaps with a major supply area finding the $29 level as a place to put up a fight. Longer-term, I believe that the $30 level does get broken and we go much higher.

SILVER Video 01.09.20

The main culprit here of course is the falling US dollar, and therefore I think we will continue to see precious metals in general rally. The $26 level underneath should be massive support, so I believe that it should continue to be a situation where buyers will come in and pick up “cheap silver” every time they get an opportunity. I do not like the idea of trying to short the market, even if it does have the occasional pullback.

It is not until the US dollar changes this trajectory overall that we will see any significant pullback in silver. With the Federal Reserve doing everything it can to flood the markets with liquidity, it is very difficult to imagine a scenario where silver suddenly fall support, as precious metals will be a great place to protect yourself from devaluing of the greenback, as well as many other currencies around the world. After all, all central banks are loose to say the least, and I think that is only going to continue to be a major problem for currencies.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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