Silver Price Forecast – Silver Markets Drift Lower on Thursday After Hot PPI Numbers

Silver markets have pulled back just a bit during the course of the trading session on Thursday, as the PPI numbers came out hotter than anticipated. By doing so, it suggests that inflation could be an issue as interest rates in the United States are pariahs again. After all, it is easier to hold paper and collect yield instead of paying for storage, which is something that you always need to pay attention to when it comes to precious metals. Ultimately, this is a market that I think continues to show negative pressure, especially as the US dollar has been strengthening.

SILVER Video 13.08.21

At this point, the $22 level underneath is support, so if we were to break down below that level, then it is likely that the market goes looking towards the $20 handle. Rallies at this point will more than likely find plenty of selling pressure, at least until we can take out the highs of the Monday candlestick. If we did that, it would obviously be a very bullish sign but currently it looks as if silver is getting ready to form a “death cross” which is a longer-term sell signal as the 50 day EMA drops below the two hundred day EMA.

All things been equal, you continue to look for selling opportunities at signs of exhaustion, and therefore I think we are plenty of opportunities on short-term charts, but if we did take out the highs from the Monday session, then I think the tide could start to turn a little bit. We have broken through the bottom of an ascending triangle, which of course is a very negative sign in general.

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