Silver Price Forecast – Silver Markets Give Up Significant Gains

Silver Markets Technical Analysis

Silver markets have rallied Friday to show signs of strength again on Friday, but it’s also worth noting that a lot of the gains were reversed. We are near a major area of “market memory” on the charts, as the area has seen a lot of buying and selling. Because of this, I think it makes quite a bit of sense that we would continue to see sellers come back in and punish those being bullish.

When you look at the recent rally, it’s rather tame compared to the massive selloff that we had seen to get down here. Ultimately, this is a market that I think will continue to see a lot of noisy behavior, but at the end of the day, you should also pay attention to external factors like the US dollar. If the US dollar starts to strengthen, that typically will work against the value of silver. The exact opposite is true as well.

Another problem that you may run into with silver is that it is considered to be a significant industrial metal, and with all of the concerns about a recession or at the very least a slowdown, demand for silver is almost certainly going to drop. The silver market is very volatile, but as you can see it does get into runaway formations sooner or later. The brutal selloff from the $26 level has been relentless, so it should not be a huge surprise that we bounced $1.50 from the bottom. At this point, I would not be surprised at all to see silver test the lows again. I will be shorting this market on a breakdown and adding along the way.

Silver Price Forecast Video 30.05.22

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