Silver Price Forecast – Silver Markets Continue to Show Signs of StrengthThe silver markets rallied a bit on Wednesday, breaking above the $18 level. The market looks as if it is going to trying to get towards the highs again.
Silver markets have rallied a bit during the trading session on Wednesday, breaking above the $18 level. By breaking above there, it is highly likely that the market could go towards the $19 level above. That is an area that has caused significant resistance more than once, so it makes sense that a pullback from here and then a recovery makes quite a bit of sense, and that is what we have seen, so that makes quite a bit of sense even if you are very bullish. A break above the $19 level should send this market looking towards the $20 level, an area that is a large, round, psychologically significant figure.
SILVER Video 11.06.20
If the market does break above the $20 level, then it is a longer-term “buy-and-hold signal”, which could be kicked off by the Federal Reserve, but I do not think it is going to happen in the next 24 hours. I believe that short-term pullbacks continue to offer buying opportunities as the Federal Reserve is likely to do whatever he can to beat down the US dollar, and of course with all of that liquidity flowing into the marketplace, it debases most currencies, not just the US dollar. Ultimately, I have no interest in shorting this market, as the market is very one-sided when it comes to the US dollar and will more than likely continue to be as we have recently had the “golden cross” in this marketplace. I expect volatility, but that is normal for silver.
For a look at all of today’s economic events, check out our economic calendar.