Silver Price Forecast – Silver Markets Pull Back From the Crucial $22 Level

Silver Markets Technical Analysis

Silver markets have pulled back from the $22 level, an area that has been crucial more than once over the last several weeks. Because of this, should not be a huge surprise to see a little bit of negativity, and ultimately I think this is a market that will continue to respect this region as resistance. In fact, it’s not until we break above the $22.50 level that silver has the momentum to take off to the upside.

The alternate scenario is that we continue to suffer at the hands of the US dollar, which has a negative correlation to the silver market at times. With this being the case, it does make sense that we will reach toward the $21 level, and then perhaps even down to the $20.50 level where we had bounced from previously.

It would not take a lot of imagination to envision a bit of a bearish flag, but that being said fundamentals do not work out for silver in the short term, mainly because it has an industrial component that gold does not have. In other words, it’s not necessarily the inflation hedge that a lot of people think it is, at least not under these types of conditions.

With the tightening Federal Reserve, the US dollar should continue to strengthen in general, therefore I think silver will remain an underperformer in comparison to gold. Because of this, I do think that we have further to go to the downside and will be looking at short-term rallies as potential selling opportunities in a market that just cannot pick up its feet.

Silver Price Forecast Video 20.06.22

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