Silver Price Forecast – Silver Markets Give Back Early Gains

Silver markets have rallied initially during the trading session on Monday but then turned around to give back those gains and form a bit of a shooting star. The silver markets continue to struggle with the $24 level, an area that of course will attract a lot of attention as it has been so resistance as of late. In that scenario, I do believe that the market will continue to bang up against the $24 level until we can make some type of bigger decision. If we do break above the $24 level, then the next target would be the 50 day EMA.

SILVER Video 31.08.21

Underneath, we have a major amount of support near the $23 level, so I certainly think it will continue to be a scenario where traders will look at the $23 area as potential value, but if we were to break down below there then we could test the $22, followed very quickly by $20. This would almost certainly company the US dollar strengthening, which would be a “risk off” type of scenario.

There are a lot of concerns around the world right now about the Delta variant causing economic slowdown situations, and that of course could sap the demand for silver. In that scenario, silver obviously would drop, and the US dollar would probably pick up due to bond buying. Either way, it is a major risk off look at, and you should also keep in mind that recently we had formed the so-called “death cross”, which is something that will attract a lot of attention for longer-term investors as well.

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