Silver Price Forecast – Silver Markets Continue to Build Base

Silver markets have initially gapped higher to kick off the week, but then pulled back to fill that gap before rallying yet again. This is a relatively good sign, and as I record this video, we are testing the top of a major resistance barrier in the form of roughly $13.10 or so. If we can break above this level though, that opens up the next phase of trading which could lead all the way towards the $15.00 level above. That’s an area that has been important more than once in the past, so therefore I would anticipate that there should be a significant amount of noise and downward pressure in that area.

SILVER Video 24.03.20

The Federal Reserve has stepped into the marketplace and promised to buy a whole host of credit related assets, and this of course is essentially quantitative easing. That should in theory, working against the value of the US dollar. However, there are credit issues around the world and a huge US dollar demand right now. That being the case, the US dollar should remain relatively strong, which will keep any rally in the silver market somewhat tepid.

Longer-term, it’s very likely that silver rallies significantly. However, until the industrial demand picks up for silver, it’s difficult to imagine that the market is going to be able to break through that area relatively easily. If it does though, the $16.00 level followed by the $16.50 level will both be potential targets. All things being equal, silver is oversold in the short term, so a breakout could offer short-term buying opportunity, but traders will certainly have to be cautious once we get closer to $14.50 above.