Silver Price Forecast – Silver Markets Drift Lower

Silver markets have pulled back a bit during the trading session on Wednesday, reaching below the $24 level at one point. Ultimately, this is a market that is struggling with the 50 day EMA above, and of course has the large, round, psychologically important figure of $25 to pay attention to also. This is a market that I think is going to be highly influenced by the US dollar, as it tends to move in a bit of a negative correlation overall. If the US dollar rallies, we are very likely to see silver struggle going forward, so that is something worth paying attention to.

SILVER Video 01.10.20

This is not necessarily to say that I think you should be a big seller of silver, just that I recognize that silver has a bit of an issue just above and we will probably continue to see a lot of probable volatility. The $22 level underneath should be a target, as it has been significant support recently. If we break down below the $22 level, then it is likely that we will see the market reached down to the $20 level, an area that I would be very interested in buying silver in large quantities. The 200 day EMA sits just above the $20 level, so that is worth paying attention to as well. With all that being said, I like buying dips, but I am not willing to sell silver anytime soon. Longer-term, I do believe that silver goes higher, but at the very least we need to build a bit of a consolidation range in this area.

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