Silver Weekly Price Forecast – Silver Gives Back Early Gains for the Week

Silver markets initially tried to rally during the course of the week but gave back the gains as the market may have gotten a bit overdone. At this point, the market is going to continue to see a lot of volatility, but I do believe that there is a significant amount of support near the $26 level. If we break down below the $26 level, then it is likely that we go looking towards the $24 level. That is an area that should continue to cause major issues as well, as we have seen a rejection of selling in that general vicinity.

SILVER Video 07.09.20

All things being equal though, we need to pay attention to the US dollar as it looks like it continues to stabilize a bit after losing 10% for the last couple of months. The question now is not so much as to whether or not the US dollar can recover, but whether or not it strengthens drastically? There are a lot of crosswinds at the moment, and that should continue to cause major issues. I think a pullback in the silver market does make some sense, and quite frankly we could drop all the way back down to the $20 level and still see buyers. Silver tends to overdo things, and it is most certainly overdone things recently.

The alternate scenario is that we break above the $30 level, which could send this market even higher, perhaps reaching towards $50 level over the longer term, as it has done a couple of times in the past. Needless to say, that is a long term, but right now I think we are more likely to see a bit of a pullback than anything else.

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