Silver Price Forecast – Silver Markets Showing Signs of Support
Silver markets dipped a bit during the trading session on Wednesday only to turn around and show signs of life again. We are grinding higher and I think that makes quite a bit of sense as central banks around the world continue to loosen monetary policy regimes that they are in. This means that people will start looking for other ways to preserve their well, as fiat currencies lose value. Because of this, I think it provides a bit of a floor underneath the gold and silver markets, so I do like the idea of picking up silver “on the cheap.” I do believe that traders will continue to look at silver as a bit of a mixed bag though, because silver also has a significant industrial component built-in as well. After all, it is used in a lot of manufacturing.
SILVER Video 10.09.20
To the downside, I see the $26 level as massive support, and I think that it more than likely will continue to act as such. I do not have any interest in trying to short this market though, because even if we break down below there, the 50 day EMA will come back into the picture, and that of course the $24 level. In other words, there are plenty of potential support levels underneath that will come into play. The trend has been higher for some time, as we have been grinding up words, with all that in the back of my mind, I find it difficult to short silver from a longer-term structural standpoint. This does not mean that we cannot fall, just that the fundamentals are helping.
For a look at all of today’s economic events, check out our economic calendar.