Silver Price Forecast – Silver Markets Rally

Silver markets have rallied a bit during the trading session on Tuesday, as the US dollar has dropped a bit. Ultimately, the market has broken above the 50 day EMA, which is a short-term bullish signal, perhaps suggesting that the silver market is going to go looking towards the $25 level. The $25 level above there would be resistance, and if we can break above there, the market is likely to go looking towards the $26 level after that. The $26 level has been resistance more than once, so if we were to break above there then it would show real strength.

SILVER Video 16.12.20

I suspect that if we do break above the $26 level, it will probably have a lot to do with the Federal Reserve and its announcement on Wednesday. After all, they are probably going to have to do something to protect the US economy, so people assume that there will be a loosening of monetary policy given enough time. With this being the case, short-term pullback should continue to be buying opportunities, all the way down to at least the $22 level.

The $22 level features the 200 day EMA, so that would be a longer-term signal for some traders out there as well. All things being equal, I think this is a market that does go higher over the longer term, especially if we get some type of significant stimulus coming out the United States, which would devalue the US dollar and suggest that there would be more of the “reflation trade” coming, which helps commodities in general, and drives up demand for silver as far as industrial use is concerned.

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