Silver Price Forecast – Silver Markets Give Back Some Gains

Silver markets have gapped to kick off the Thursday session, showing signs of exhaustion. Ultimately, the market is likely to see a lot of volatility but quite frankly I think there is still an argument to be made for silver longer term. We had gotten a bit ahead of ourselves recently, so I think that the market is going to go looking towards the $26 level, possibly as low as the $25 level after that.

SILVER Video 21.08.20

That is a major round figure that will of course attract a lot of attention and it should be noted that it is where we bounced from previously, although during that specific candlestick we did drop as low as $24. Speaking of $24, the 50 day EMA is starting to race towards that area so I think there will be buyers there as well. In fact, it is not until we break down below the $24 level that I become concerned.

Silver of course we ask to the value will of the US dollar, which has been hammered for quite some time. That being said, the dollar is a bit oversold, so a bounce in the dollar will probably have a slightly negative effect on the silver market. Longer-term though, central banks around the world continue to print money, and that of course will be positive for precious metals in general, with silver being even more volatile than gold at times. Ultimately, I believe that we are going to drop a bit from here only to find buyers again to push this market towards the $28 level.

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