Silver Price Forecast – Silver Markets Rally AgainSilver markets have rallied again during the trading session on Thursday as we continue to see quite a bit of interest in silver near the $17.50 level.
Silver markets continue to be very noisy in general, bouncing around between the $17.50 level and the $18.00 level. I think it is only a matter of time before we have to make some type of decision, but quite frankly it certainly looks as if there is more upward pressure than down. This makes quite a bit of sense when you consider just how concerned the world is about the coronavirus numbers and of course the various uncertainty and reasons that can be cited when it comes to economic conditions.
We have in no particular order Brexit, coronavirus, US/China tensions, fears of yet another lockdown for various economies, and massive debt issues. Beyond that, we also have central banks around the world doing everything they can to liquefy the markets, so therefore fiat currency could be devalued.
SILVER Video 26.06.20
In that scenario, it is obviously more a bit of a precious metal trade than anything else, as silver also is considered to be an industrial metal. This means that gold will lead silver to the upside, but ultimately, I do think that we are looking at a scenario where both will rise eventually. The real indicator that silver is ready to take off to the upside will be if and when gold breaks above the crucial $1800 level. If it does, then a lot of traders will suddenly shift their point of attack to silver in order to play a bit of “catch up.” With this, I continue to buy short-term dips.
For a look at all of today’s economic events, check out our economic calendar.