Silver Price Forecast – Silver Markets Continue to Grind HigherSilver markets rallied again during the trading session on Monday, as we continue to see a lot of “risk off” trading when it comes to the metals markets.
Silver markets gapped slightly higher to kick off the week on Monday, but then rallied towards the $18.15 level almost immediately. At this point, we do see quite a bit of noise extending all the way to the $19 level, so I like the idea of buying short-term pullbacks offer little bits and pieces of value. I do think that we will continue to see a lot of concerns when it comes to global growth, which works in favor of precious metals as people worry about the safety of their funds. Furthermore though, we also have to look at the industrial side of the equation as well, as silver is an industrial metal. This is because we tend to see demand rise and fall with industrial production overall.
SILVER Video 23.06.20
With all this being said, I think gold continues to outperform silver as we are seeing more of a “risk off” trade, but I do think that silver does play a little bit of catch-up. The $18.50 level being broken opens up the door to the $19.00 level, and then eventually the $20.00 level. If we can break above there, then it frees the silver market to go much, much higher.
To the downside, I see the $17 level as significant support, as we not only have seen it bounce the market back up in the air, but we also have the large round number aspect, and that of course the 50 day EMA in the same neighborhood. All things being equal I think that we are essentially going to be range bound between $17 and $19 until we can make a longer-term decision.
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