Silver Weekly Price Forecast – Silver Markets Continue Consolidation

Silver markets have been all over the place during the week, as we continue to see a lot of volatility in marketplaces worldwide. With that being the case, it makes sense that we ended up forming a relatively neutral candlestick, but it is bouncing from a significant support level in the $26 region. That does catch my attention and I think it suggests that we are in fact going to go higher given enough time. The question now is whether or not we will move based upon US dollar weakness, or if we will move based upon industrial demand?

SILVER Video 14.09.20

Keep in mind that is not just the US dollar they can move the silver markets, central banks around the world are very loose with monetary policy across-the-board. With that being the case, I think what we are seeing here is a return to hard assets in a time where people are quite cautious. The $28 level above will more than likely attract a lot of attention as well, as the level has offered resistance on the real Bonnie of the last couple of candlesticks. Ultimately, I do think that this is a market that will continue to go higher over the longer term, if for no other reason than inflation could be coming down the road. However, if the market drops below the $25 level, we have to rethink quite a bit as it could signal a bit of trouble. Longer-term, I believe that we will make another attempt to break above the $30 handle.

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