Silver Price Forecast – Silver markets shoot straight up in the air

The Silver markets rallied significantly during the trading session on Wednesday, slicing through the $70.00 level during US trading. This is a very bullish turn of events, as the $17.00 level is a large, round, psychologically significant figure, and of course an area where we had seen previous resistance.
Christopher Lewis
Silver daily chart, August 08, 2019

Silver markets rallied significantly during the trading session on Wednesday, reaching above the $70.00 level during north American trading. This is a major event, and a target that I had been aiming for. However, I didn’t expect it to happen this quickly. Junk bonds have been blowing out, which has put a ripple of fear through the markets. Beyond that, overnight we had three Asian central banks cut interest rates, which suggests that it is a coordinated move.

SILVER Video 08.08.19

It is not lost on me that New Zealand, India, and Thailand all cut interest rates within a few hours of each other, and that tells me that these smaller central banks are starting to feel the pinch of global slowdown dynamics, and of course the issues between the Americans and the Chinese which are only exacerbating that. Ultimately, I think that the market probably is trying to get ahead of what looks to be coordinated easing out of central banks around the world. What do the central banks know that we don’t? The answer is they don’t know anything special; they just are starting to finally react to the fact that the global economy is slowing down.

With this in mind the uptrend in Silver continues and I think at this point the $16.00 level has to be thought of as the “floor” in the market. I do think that the market will probably pull back a little bit from here, but it is still not one that you can sell. I would be especially interested in trying to buy some type of bounce near the $16.60 level.

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