Silver Price Forecast – Silver Markets Recover After Initial Selloff

Silver markets have initially fallen during the course of the trading session on Thursday to reach down towards the $22.50 level, before turning around and reaching towards the $22.75 level. Ultimately, this is a market that is trying to press towards the $23 level, and it is worth noting that Friday will feature the Non-Farm Payroll number, which of course will have a huge move just waiting to happen in the US dollar.

SILVER Video 08.10.21

The hammer is the forth one in a row, so it does suggest that we are building up pressure to make a move to the upside. If we can clear the $23 level, it is likely that we could go looking towards the 50 day EMA above, perhaps even the $24 level after that. Obviously, the jobs number will have a major influence on what happens next, and quite frankly I think it comes down to whether or not it looks like the economy is going to continue to go forward. The lack of demand is a major issue, but if we turn around and see the market show signs of strength, it is likely that we could bounce.

However, if the market was to turn around a break down below the $22 level, then it is likely that we could go looking towards the $20 level over the longer term. That being said, the market is likely to continue to see a fight in this general vicinity, and I would not put any money into the silver market at least until we get all of the answers on Friday from the reaction to the jobs report. It certainly looks as if we are trying to recover, but that is something that is worth waiting on for confirmation.

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