Silver Price Forecast – Silver Markets Continue to Show Weakness

Silver markets initially tried to rally during the trading session on Wednesday but gave back the gains near $24 to show signs of weakness. Ultimately, this is a market that I think is probably going to continue to reach towards the $23 level, possibly even down towards the lows of last week. Breaking down below that would then open up the possibility of a move down to the $20 level. In the short term, I think that rallies will continue to be sold into, especially as the US dollar continues to show signs of strength. Ultimately, the market is also paying close attention to the “death cross” that just formed, and therefore I think it makes quite a bit of sense that longer-term sellers continue to move into this market.

SILVER Video 19.08.21

On the other hand, if we were to break above the $24 level it is likely that the market could go looking towards the $25 level above. The $25 level course would attract a certain amount of headline attention, especially as the moving averages are sitting just above that level. All things being equal, that would be a difficult move to make, but it is a possibility.

In general, I think the market should continue to be very bearish, and of course tied in a negative correlation to the US Dollar Index. As traders continue to plow into the bond market, it does make a certain amount of sense that we will see silver suffer, especially as it has a major industrial component to its pricing, which of course seems to be somewhat softening as global demand takes a major hit in general.

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