Silver Weekly Price Forecast – Silver Markets Recover
Silver markets have rallied a bit during the course of the week to show signs of life again, as the hammer from a couple of weeks ago certainly show that the market may be fighting. Now that Jerome Powell has spoken at Jackson Hole and suggested that the Federal Reserve is going to taper, but perhaps in a longer-term sense, it seems as if traders are willing to sell the US dollar rather quickly. At that point, silver of course got a big boost and as I record this, the market is testing the $24 level. If we can break above there, then it is very likely that the silver market maker looking towards the $25 level.
SILVER Video 30.08.21
When you look at the weekly chart though, you can clearly see that there is a huge range that we have been in, and if you look at the US Dollar Index, you can see that there is a strong correlation, or perhaps I should say a negative correlation. Underneath, the 200 week EMA is sitting above the $20 level, and I think if we do break down then it is likely that the market goes looking towards that region. As a general rule, we have been selling off for months, so at the very least I suspect that a bounce is probably in the cards, especially as the world starts to look for reasons to get involved in the inflation trade. The inflation trade has worked out quite some time, and of course each start buying precious metals that is exactly what you are banking on, more inflation. Even Jerome Powell says there is a certain amount of inflation out there.
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