Silver Price Forecast – Silver Markets Continue to Move With Dollar

Silver markets have rallied slightly during the trading session on Tuesday as it bounced from the 50 day EMA. The market continues to go back and forth overall, and I think at this point in time we are essentially waiting on the results of the FOMC meeting. Jerome Powell will be closely listen to as per usual, and it does make sense that we will see some type of reaction after the press conference on Tuesday. Ultimately, the key to the silver market is going to be whether or not we can stay above the $26 level.

SILVER Video 27.01.21

Looking at this chart, I think that if we can break above the $26 level, it is likely that we will see a move towards the $27 level, possibly the $27.50 level before it is all said and done. On the other hand, if we do pull back from here it is likely that we will see the $24 level offer fairly significant support. The 200 day EMA is currently at the $23 level, so that also can offer support. Quite frankly, this all comes down to the idea of the US dollar losing strength over the longer term, and the significant amount of stimulus that is all but given by central banks around the world. As long as that is the case, people will want to see wealth preservation via hard assets, such as silver. Furthermore, there is an argument to be made for the “reflation trade” to drive up the demand for silver as far as industrial use is concerned.

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