Silver Price Forecast – Silver Markets Continue to Find InterestThe silver markets went back and forth during the trading session on Monday, reaching down towards the $24 level, where buyers have jumped in.
Silver markets continue to grind back and forth, reacting to the idea of what is going on in the US dollar, and therefore I think it is worth paying attention to the US Dollar Index, as it tends to have a rather negative correlation to the silver market as of late. In other words, if the US dollar starts to rally, that works against silver. Having said that, you can see that we have fallen rather hard over the last month or so, only to bounce again. I think we probably still have further to go to the downside, especially as there is so much in the way of concern.
SILVER Video 15.10.20
Silver is a precious metal, but unfortunately it also has more of an industrial component as well. In other words, the demand for silver is a very real thing, unlike gold which although gold does have a bit of industrial demand, it pales in comparison to silver. With that being said, silver does tend to be a lot more fragile than gold when it comes to the robustness of the trade. Looking at this chart, I think if we break down below the $24 level, we are likely to go to the $23 level, followed by the $22 level. Quite frankly, I could see this market reaching all the way down to the $20 level, which is essentially what I considered to be the “floor the market.”
The best way to treat silver at this point I think is the trade officer the US dollar, and then only in small positions the board of a longer-term bullish position. I do think that it is only a matter of time before silver takes off, mainly due to what central banks are going to quantitative easing matters. That being said, be cautious about jumping “all in.”
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