Silver Price Forecasts – Silver Markets Break through Major Support



Silver markets slumped significantly during Wednesday’s trading session to breach the crucial $ 22 level. This is an area that I have been observing for some time, and now that it is giving way to selling pressure, I expect we are going much, much lower. At this point, I imagine a crossing to the $ 20 level is very likely. Rallies at this point will continue to sell as the $ 22 level should start to offer resistance.

SILVER Video 09/30/21

The US dollar is of course a major culprit in what’s going on right now, and as long as US yields continue to strengthen, this will continue to work against the overall value of precious metals, with silver being particularly sensitive. Beyond that, if we have some type of major “risk-free event” it will put more downward pressure on the silver market and therefore drop it down to the $ 20 level.

At this point, I have no interest in trying to buy this market, after what we saw on Wednesday. In fact, I think this market would have to recover to the $ 23 level to become long again. The market reversal and recovery of all of that would obviously be a very bullish sign, but I don’t think it’s happening anytime soon. However, I will continue to moderate short-term rallies at the first signs of exhaustion on the short-term charts. The greenback continues to be one of the main drivers of the evolution of the metals market.

For an overview of all of today’s economic events, check out our economic calendar.

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