Silver Price Forecast:
- It’s been a big summer for precious metals.
- Silver prices[1] gained as much as 68% during the month of July while Gold prices[2] put in a more paltry 18% peak gain.
- For much of August both Gold and Silver prices have been beset by correction; but after a big area of support came into play ahead of tomorrow’s Jackson Hole kick-off, the question is whether buyers are positioning for another run towards the 30-handle.
- Appearing to play a role here in Silver price action is the 30-level, which is considered a psychological level[3]. This is taught as part of DailyFX Education[4].
Silver Breaks Out – but Can Bulls Drive?
It’s been a big summer for metals and, well, a number of other physical assets that have gained en masse as the US government launched a trove of measures designed to offset the inevitable business slowdown that followed the coronavirus-drive lockdowns. As most economies continue to hobble with the aim of a ‘V-shaped’ recovery, the one aspect that’s remained clear is that global governments were going to do whatever they could try to offset the economic ills of the pandemic. In many cases, this involved ushering out the printing presses again, and with that prospect of monetary dilution came the potential for gains in hard assets that could simply be diluted: Hard assets such as Gold and Silver.
And its been a big year already for Gold. This was my ‘top trade idea’ for 2020, and Gold prices really went to work in the pandemic backdrop, quickly rushing up to a fresh all-time-high. And while this has gotten a lot of attention, especially of recent as that new high came into play,
