Silver Price Forecast – Silver Markets Recover Slightly

Silver markets have had a rough week, so quite frankly the fact that both Thursday and Friday were relatively quiet should be welcomed news. We are sitting on top of the 50 day EMA right now, and I suspect that we probably have more sideways action ahead of us than anything else. I do not necessarily like the idea of putting a position on quite yet, but if I were forced to do so I suppose I would be a buyer. That being said, I think it is going to take a lot more work than a handful of people on Reddit to push silver above the $30 level. Unfortunately, I feel that the retail community is in the process of learning a very difficult and expensive lesson.

SILVER Video 08.02.21

The US dollar has been stronger as of late, so it makes sense that silver has been somewhat lackluster. The initial move during the week of course was that “retail short squeeze” that happen, but you can see that we have all but completely wiped out the gains. At this point, I think we go back towards the grinding higher longer-term more than anything else. This is based upon stimulus, as silver has an industrial component that a lot of people like to trade. Silver is used in a whole plethora of industrial component such as solar panels, batteries, and the like. This is essentially going to be a play on stimulus and the “green technologies” that the Biden administration is so excited about. Whether or not it comes to fruition may be a different story, but right now that is the narrative.

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