Silver Weekly Price Forecast – Silver Markets Collapsed

Silver markets have fallen apart to the downside, overreacting as per usual. As the candlestick is rather brutal looking, the reality is that the market is still bullish. We had a parabolic move to the upside so a resumption of that trend would be asking quite a bit of effort to continue. I think at this point it is likely that we will see a bit of volatility, but I certainly think that there are plenty of buyers underneath. After all, the market went straight up in the air.

SILVER Video 28.09.20

One of the biggest killers a silver is the strength of the US dollar that we have seen, and if that continues to be the case silver will continue to crater lower. Longer-term though, I do believe that it is a market that you want to own, mainly because central banks around the world continue to loosen monetary policy and of course central banks are also buying precious metals. While they are not necessarily step in to buy silver, it does tend to react based upon gold but with more volatility.

I believe that this market could drop as low as $20 over the next couple of weeks, but on shorter-term charts, mainly the daily timeframe, it looks like we might get a short-term bounce. Longer-term, I am more than willing to buy-and-hold silver and recognize that eventually we will explode to the upside yet again because all of the reasons that have driven silver higher are still out there. This was simple overbought conditions getting pushed over by the US dollar strengthening. Markets do not typically go straight up in the air and not pull back drastically, so this should not be a huge surprise that we have seen this.

For a look at all of today’s economic events, check out our economic calendar.

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