Silver Price Forecast – Silver Markets Gap Lower

Technical Analysis of the Silver Markets

Silver markets have discovered themselves to be in significant difficulty on Tuesday after initially gapping lower. Yes, we filled the gap as futures markets generally do, but at that time, we ended up seeing a lot of sellers come back into the market and punish it. As a result, we should expect to see further selling pressure and a continuation of the dismal two weeks we've had so far.

Given enough time, the market may eventually touch the lows of $20.42 before falling to the $20 level. The fact that something is possible doesn't indicate that it will happen straight away or even be simple. However, it's important to remember that the market is almost certainly going to be quite volatile.

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Even if we do rise from here, I won't be satisfied that the trend has changed until we break above the $23 level. That does not look very realistic, therefore at this time, I anticipate that we have much further to go to the downside. For as long as the US dollar is strong, it's hard to see silver becoming a desirable asset class.

If you're looking for a way to protect against inflation, look no further than gold. Due to the fact that gold lacks the industrial component that silver has, it acts as a noise buffer. Nonetheless, this is a market that looks dreadful, and I see no reason to get long of silver anytime soon. Fading short-term rallies has succeeded so far.