Silver Price Forecast – Silver Markets Show Signs of Strength AgainSilver markets initially fell on Tuesday but found enough support at the $24 level to turn things around and form a bit of a hammer.
Silver markets initially pulled back during the trading session on Tuesday to reach down towards the $24 level. At that point, the market turned around to bounce significantly and ultimately it seems as if we can break above the $26 level, then the market could very well go looking towards the $28 level over the longer term. All things being equal, this is a market that is well supported underneath, and quite frankly moving on the idea of stimulus still. The US dollar falling and of course is fuel for silver to continue going higher, and I think that is what you need to pay attention to more than anything else.
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If we can break above the $26 level, I think it will attract more in flow of money, as it would probably signify the US dollar falling as well. Janet Yellen is testifying in front of Congress during the trading session for her confirmation hearing, so it is possible that traders may get some idea of just how dovish she is going to be. Quite frankly, I do not think the Janet Yellen has it in her DNA to be anything remotely close to hawkish, so more than likely we will see a continuation of the US dollar depreciation eventually. In the short term though, we have gotten a little bit overstretch when it comes to selling of the US dollar so I think that the silver markets may more or less go back and forth in the short term with an upward bias.
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