Silver Price Forecast – Silver Markets Continue to Show Resiliency

Silver markets have gapped lower during the open on Wednesday, reaching down towards the $25.20 level to find buyers again. Ultimately, the market turned right back around to show signs of strength again, and it looks to me as if we are going to continue to try to reach towards the $20 level. The 50 day EMA underneath continues offer support and is starting to turn higher. Ultimately, I think that the market goes looking towards the $20 level again, especially as the US dollar is losing value during the day.

SILVER Video 24.12.20

The United States is flooding the markets with massive stimulus, and that should devalue the United States dollar. By doing so, the market is likely to see money running into the precious metals markets, as it is a bit of a hedge for inflation. Ultimately, I think it is only a matter of time before we reach towards higher levels, and therefore I think that any type of pullback should offer value. It is not until we break down below the $24 level that I would be concerned, and then at that point in time the market is likely to go down towards the $22 level.

The $22 level is the bottom of the larger consolidation area, and therefore you can see that it should be the bottom of the overall trend to the upside. Longer-term, I think that the market goes looking towards the $30 level, but it is probably going to be a story for next year. Thin holiday trading will continue to be a danger that you need to pay attention to.

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