Silver Weekly Price Forecast – Silver Markets Trying to Base

Silver markets rallied a bit during the week, breaking above the $17.00 level again. That being said though, the market looks as if we are going to continue to see a lot of issues right now. At this point it is suffering at the hands of the fact that there is an industrial component to it. If the global economy is in fact starting to slow down it makes sense that silver demand may do the same. That being said though, the market has been running to metals as central banks continue to loosen monetary policy. Ultimately, I do think that silver rallies, but it is certainly struggling to keep up with gold.

SILVER Video 09.03.20

To the downside, if the market were to break below the $16.00 level it would be a very negative turn of events and could send silver reeling. That would probably need to see strong US dollar action, and that is something that I would not anticipate seeing anytime soon. The $18.00 level above would be the target in the short term, perhaps even towards the $19.00 level given enough time. At this point, I prefer the upside, but I also recognize that if you are going to trade precious metals based upon central bank actions, you are probably better off trading gold as it seems to have quite a bit more momentum. That being said, if the precious metal sell off, silver is going to be where you want to go short. I fully anticipate that we continue to grind back and forth with an upward slant though.