Silver Price Forecast – Silver Markets Get Hammered by Pfizer

Silver markets initially tried to rally during the trading session on Monday but gave back the gains around the $26 level. This was exacerbated by the fact that Pfizer came out with news that they had a vaccine with a 90% efficacy rating against the coronavirus, and for that matter could be modified to protect against several other potential diseases. With that being the case, the world celebrated and the “risk on” trade went full tilt. However, there are still plenty of reasons to think that we might have strengthen this market.

SILVER Video 10.11.20

At the very least, you have to keep in mind that the markets will continue to look at the central banks around the world flooding the markets with liquidity as a sign that precious metals probably need to be part of a portfolio. Silver of course falls in this purview, but it is second to gold, so therefore it is worth paying attention to, but you should keep in mind that the market does tend to be much thinner then gold, so it makes sense that we would see Wilder moves over here. That being said though, I think that once we get closer to the $22.75 level, it is likely that we could see buyers jump back into this market. This is also true at the 200 day EMA underneath then the $20 level.

All this being said, I think it is only a matter of time before we find value hunters out there willing to jump in and pick up silver “on the cheap.” With this, I have no interest in shorting this market and I do think that if we show any sign of resiliency here it should give you a heads up as to where we go next.

For a look at all of today’s economic events, check out our economic calendar.