Silver Price Forecast – Silver Markets Continue to Find Buyers

Silver markets have broken above the $20 level during the trading session on Monday, clearing a major hurdle. At this point, breaking above the level of course is a huge psychological win for the buyers, and now that we are above the $20 level it is only a matter of time before we start to accelerate to the upside. Having said that, the market is a little extended at this point so do not be surprised at all to see a pullback in order to build up the necessary money to turn things around and continue the leg higher. Nonetheless, it is obvious at this point in time that silver cannot be sold.

SILVER Video 21.07.20

I believe that there is a significant amount of support near the $19 level, an area that previously had been resistance in of course is a large, round, psychologically significant figure. The 50 day EMA currently sits just above the $18 level which is also supportive as well, so I think overall this is a “buy on the dips” type of scenario. As the US dollar continues to lose value overall, that should continue to push silver higher by default.

The only thing working against silver at this point is whether or not there is going to be enough industrial demand. Industrial demand is a major part of the equation, but it is obvious that we are focusing more on the Federal Reserve and what it is doing with monetary policy than anything else. With that being the case, buying the dips is the only way that you can start.

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