Silver Price Forecast – Silver Markets Continue to Look Overbought

Silver markets have pulled back a bit during the trading session on Friday, only to find buyers again near the $22.50 level. Quite frankly, this is a market that has gotten way ahead of itself, so I have no interest in trying to get cute and buy it up here. I think that value will eventually return to this market and when it does, we should get a nice opportunity to pick up silver “on the cheap”, perhaps somewhere closer to the $22 level, if not the $21 level. We clearly have a potential support level in the $20 level now, so I like the idea of going long on dips, but I certainly do not want to “chase the trade” all the way up here.

SILVER Video 27.07.20

I think that longer term we probably go looking towards the $26 level, with of course the $25 level offering a significant amount of psychological resistance. The US dollar is the main culprit in this trade, as the US dollar is getting hammered by the Federal Reserve. With that in mind I think it is only a matter of time before we get some type of pullback, only to see more people flood into this market. Breaking above the $20 level was a major turn of events and should not be overlooked. Over the longer term, I think that we are in the beginning of a massive run higher in the silver, gold, and platinum markets.

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