Silver Price Forecast – Silver Markets Continue to Grind Towards Major Figure

Silver markets have been volatile again during the trading session on Thursday, initially dropping rather hard but then turning around to show signs of life again as we continue to strike forward towards the $20 level. The $20 level of course is one that is a rather psychologically and structurally important, so do not be surprised at all to see this market try to break above the $20 level multiple times, but eventually I think it happens. If and when we break above the $20 level it is likely that silver will take off for a bigger move, perhaps as high as $50 over the longer term. Ultimately, that would be a repeat of what we had seen during the Great Financial Crisis, which was a powerful move obviously. This does not mean that we get there overnight, just that it would be a longer-term target.

SILVER Video 17.07.20

Looking at this chart, I think that there is significant support all the way down to the $19 level, an area that had been a major breakout point. Overall, I think this is a market that will continue to be a “buy on the dips” type of scenario, but it will obviously be very volatile. Keep the US dollar in the back of your mind because it does have a significant amount of influence on this market as well. I expect choppy and volatile conditions, but ultimately, I do believe that we will eventually find reasons to be long of this market and not short. Central banks around the world flooding the markets with liquidity continues to be a major issue.

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