Silver markets initially fell during the trading session on Monday, but then turned around to reach towards the $16.50 level. That’s an area that of course attracts a lot of attention, as it is a large, round, psychologically important figure. Ultimately, this is a market that should continue to be very supported, and I do think that it’s only a matter of time before we see a lot of bullish pressure, as we see a lot of central bank intervention to loosen monetary policy, which of course drives up demand for precious metals in general. I believe at this point, both silver and gold will continue to find plenty of buyers.
SILVER Video 13.08.19
That doesn’t necessarily mean that we will be able to simply tear off to the upside without hesitation, but I suspect that the $17.25 level will continue to be a bit of resistance. Ultimately, if we can break above there, then we could continue to go much higher, perhaps reaching towards the $17.50 level. At this point, the $16.50 level underneath will continue to be massive support and I think it’s only a matter time before we see buyers in that area. I think the absolute “floor” in the market is the $16.00 level, and of course the 50 day EMA reaching towards that level helps that argument as well. I have no interest in shorting Silver, and believe that when we pulled back it’s a buying opportunity as it represents quite a bit of value.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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