Silver Price Forecast – Silver Continues to Fall

Silver Price Forecast Video for 09.08.23

Silver Markets Technical Analysis

Silver fell again during the trading session on Tuesday, as we are now below the 200-Day EMA. This is a very negative sign, and now it looks like we could be threatening the $22.60 region, an area that has been important more than once. If we were to break down below there, then we would almost certainly test the $22 level, which is a large, round, psychologically significant figure, and the absolute bottom of the overall range. Anything below there would have silver dropping quite drastically, perhaps all the way down to the $20 level.

Ultimately, I think this is a market that is looking for some type of stability, but keep in mind that the negative correlation to the US dollar remains very important, and as we have seen a lot of noisy behavior as a link, it does make sense that we would see a lot of noisy action on the chart. With this being the case, I think it’s probably only a matter of time before we see some type of balance, but if we do not, that could be an extraordinarily negative turn of events.

On the upside, we have the 50-Day EMA right around the $24 level, which of course is a large, round, psychologically significant figure and the 38.2% Fibonacci retracement level from the previous highs. With that being the case, it’s an area that I think a lot of people will pay close attention to, but I also recognize that the volatility is probably going to get worse, not better, and this is especially going to be true of the US dollar continues to strengthen.

You cannot overlook the fact that silver is also an industrial metal, so this could be partially in reaction to the idea that the global economy is slowing down, if that’s the case then the demand for silver will almost certainly drop as well. In that scenario, you’ve got a situation where a strengthening US dollar and a lack of demand could be very toxic. The pullback has been very brutal, but when you look at the longer-term chart, we are still very much in a range bound type of market overall.

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