Silver Price Forecast – Silver Markets Continue to Look Horrible
Silver markets have initially tried to rally during the trading session on Friday but broke down to slam into the $22 level. The $22 level of course is an area that has been important more than once, going back multiple months. At this point, if the market were to break down below the $22 level, it is likely that we go looking towards the most recent lows, and perhaps even break down below there to go looking towards the $20 level.
SILVER Video 06.12.21
To the upside, if we can break above the highs of the Friday session, then it is very likely that we could go looking towards $23 pretty quickly and then $23.50. Nonetheless, I do not like the idea of buying silver at the moment, because quite frankly the US dollar continues to strengthen and that is not good news for silver. Silver tends to be very sensitive to the greenback, so you must pay attention to the US Dollar Index.
Silver also has the industrial use case situation to keep in the back of your mind, and therefore it is likely to pay close attention to the coronavirus figures, because the idea of course is that if we get more lockdowns, there will be less need for industrial output. That being said, the market has bounced rather hard from this $22 level, an area that I had been paying attention to for quite some time. Furthermore, silver is extraordinarily oversold so it does make a certain amount of sense that we would see a sudden turn around, but quite frankly we need the US dollar to cooperate.
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