Silver Weekly Price Forecast – Silver Has Been All Over the Place

Silver markets have been back and forth during the course of the week, testing the $24 level for support. The $26 level above offers significant resistance, so at this point in time I think we continue to chop around in general. The candlestick does suggest that there might be a little bit of support here, and for what it is worth on the daily chart we have seen significant support right around the $24 level. I think ultimately this is a scenario where we continue to see choppy behavior but with more of an upward tilt than anything else.

SILVER Video 25.01.21

Stimulus is a bit of an open question right now, and that of course has a major influence on what happens with the US dollar. By extension, the US dollar greatly influences what happens next with silver. The silver market continues to be sensitive to stimulus because there is also a significant amount of industrial demand that could possibly come into play as well. The choppiness that we have seen over the last couple of months will more than likely continue to be the way this market moves, based upon the indecision that is almost certainly going to be part of the stimulus, but at the end of the day there will be a certain amount.

It is more about the size and timing of the stimulus at this point than anything else. Central banks around the world continue to flood the markets with liquidity, thereby driving up the price of hard assets such as silver. I have no interest in shorting this market until we can break down below the $22 level.

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