Silver Price Forecast – Silver Markets Struggling With $24

Silver markets have gone back and forth during the course of the trading session on Tuesday as the $24 level continues offer a lot of resistance. Ultimately, this is a market that I think will continue to look at this area as a bit of a barrier, especially as the 50 day EMA is starting to race down to that region. The US dollar obviously has its influence as well, as the US dollar tends to have a massive negative correlation to silver, so with that being the case pay attention to the US Dollar Index.

SILVER Video 01.09.21

In general, I believe that silver will move right along with the idea of the market rallying and of course global production of industrial goods gathering steam. Quite frankly, there is so much in the way of disruption when it comes to the global supply chain that silver may be suffering as a result. After all, if the industrial companies out there cannot produce goods, they do not necessarily need silver. Beyond that, there is also the possibility that we will have interest rates rising, and that makes precious metals less attractive. All things been equal, you also have to look at the idea of the “death cross” forming from a couple of weeks ago, so it looks as if we probably have a longer-term negativity to worry about.

On the other hand, if we can break above the 50 day EMA and then of course the 200 day EMA, then the market is likely to go much higher, perhaps reaching towards $26, maybe even $27. The way the market looks right now though, it certainly looks as if we are probably going to continue to limp along.

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