Silver Price Forecast – Silver Markets Stagnant

Silver markets have gone back and forth during the trading session on Monday, as we have no idea what to do with the silver market currently. It looks as if the markets are more positive than negative, but ultimately the 50 day EMA above will continue to cause some headaches for traders to do not have enough confidence.

Ultimately, I think that we probably pull back and go looking towards the $22 level where there should be significant support, followed by the 200 day EMA and then eventually the $20 level. This of course will be greatly influenced by what happens with the US dollar, so keep in mind that you to pay attention to the greenback as it tends to have a pretty extreme negative correlation to this market.

SILVER Video 06.10.20

On the other hand, if we get a daily close above the 50 day EMA it is likely that we could go looking towards the $27 level. That is an area where we have seen a lot of selling recently, and therefore it should not be a huge surprise that we would see sellers there again. Ultimately, I believe that this is a market that is probably going to go looking for value underneath, and I do think that there are plenty of people that would be more than willing to buy silver closer to the $20 level. That is an area where we had seen a major breakout previously, so it is not a huge surprise or stretch of the imagination to think that there would be a lot of interest there.

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