Silver Price Forecast – Silver Markets Have Ugly Opening

Silver markets have been hit hard during the trading session on Tuesday at the open, as we gapped lower to reach down towards the $19.50 level. That being said, the market is still very much in an uptrend, so I am not necessarily willing to give up on that. I think that given enough time we will eventually see buyers come back in and I think that the $19 level is a perfect place for that to happen. The $19 level had previously been massive resistance so to see support there would not be much of a surprise and would jive quite well with “market memory.”

SILVER Video 15.07.20

To the upside, I still see the $20 level is the most likely target, and it should offer quite a bit of resistance from what I can see. Ultimately, I believe that this market goes looking for some type of buying opportunity at lower levels, as silver will “be on the cheap.” I think ultimately the US dollar has a major influence as well, but beyond that we also have to pay attention to the various central banks around the world that are trying to kill their own currencies.

Right now, the Federal Reserve is rapidly becoming the winner in the “race to the bottom”, but do not count out the ECB or the be OJ. They both are rather good about killing their own currencies as well. As far as industrial demand is concerned, it probably has absolutely nothing to do with what we are seeing right now in the precious metals markets.

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This article was originally posted on FX Empire

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