Silver Price Forecasts – Silver markets retreat with the strength of the dollar
Silver markets retreated slightly on Wednesday as the US dollar strengthened quite significantly. As of this writing, we are currently testing the $ 24 level, which is an area that has been massive support in the past, as well as resistance. If we can fall below that level, the market will likely go down much more, approaching the $ 23 level. The $ 23 level is of course an area that would get a lot of attention as it was the previous lowest area.
SILVER Video 09.09.21
On the other hand, if we can turn around and pull out the $ 25 level, then the market is likely to go much higher. That would obviously be an extraordinarily bullish sign, and so I’m guessing this market could go much higher, possibly hitting the $ 27 level. This would of course require an overall weakening of the US dollar, which of course has a negative correlation with the silver market.
Also, the market is moving on the idea of industrial demand as well, and quite frankly there has been all of a sudden a lot of worries about global growth. If this continues to be a major problem, then the money will almost certainly be crushed. On the other hand, if we were to break above to the upside, it is likely that this will be a scenario where we have seen a sudden change in attitude overall. Looking at this graph, if we can mostly break down the noise that we have recently seen, that would actually be a very positive sign at this point.
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