Silver Price Forecast – Silver Markets Take Wild Ride on Monday

Silver markets have gone all over the place during the trading session on Monday, as we have ended up forming a relatively neutral candlestick, but also with a ton of exhaustion in both directions. This is mainly due to the fact that the British pound fell apart after it was announced that the United Kingdom is locking itself back down due to the mutation of the coronavirus, and this had the GBP/USD pair gapping lower and falling apart. This meant that the US dollar has seen quite a bit of strength overall, and that wait upon the silver market initially. What is interesting though is that we ended up filling the gap from below, with the 50 day EMA sitting just below.

SILVER Video 22.12.20

To the upside, the market tested the major selloff area, which is just below the $20 level. At the end of the day, it looks as if the market is finally starting to settle down, with what is going to be a much more believable body to this candlestick. Keep in mind that liquidity would have been a major issue during the trading session, so it is almost as if you could clip the wicks off of the candlestick, and simply look at the body. Because of this, I believe that the market does continue to go higher, but it may be difficult to trade over the next couple of days as liquidity is going to be very thin. I think that dips continue to offer potential buying opportunities, and of course you need to pay attention to the US Dollar Index, as it has a strong inverse correlation to the silver market.

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