Silver Daily Forecast – Silver Pressing on $12 as Market Turmoil Continues

Silver prices have dropped on Tuesday, after a huge drop on ‘Black Monday’. The financial markets remain volatile, which means that further losses could be in store for silver this week.
Kenny Fisher
Gold Silver

Silver has lost ground on Tuesday. Currently, silver is trading at $12.43, down $0.47 or 3.75% on the day.

‘Black Monday’ Sends Silver Reeling

The financial markets were in free-fall on Monday, as the equity markets suffered their worst one-day loss since the 1987 crash. The economic picture remains grim, despite the emergency move by the Federal Reserve on Sunday, which cut interest rates to a range between zero and 0.25%. Investors remain rattled and the equity markets are bearing the brunt of the panic. Randy Frederick, vice president of trading and derivatives for Charles Schwab, was somber in an assessment of the situation, saying that “we have not experienced an issue like this in the last several decades, where it affects all industries and businesses everywhere in the world.” Frederick added that “a recession is a fairly high probability. The question is when does it start”.

Jittery investors have been gripped by a “dash for cash” attitude, which has left all asset classes vulnerable. Commenting on the market meltdown, Phil Streible, chief market strategist of Blue Line Futures, has noted that “it seems like the only place that anyone found any safe haven in was the bond market, but with yields dipping back down below 0.64%, I think that there’s not much room there on the upside”.

Black Monday did not spare silver, as the metal fell by 12.2 percent. In the month of March, the metal has declined by a staggering 25.0%, as silver’s (partial) safe-haven status has not been enough to save the metal from the ravages of the market melt-down.

 

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Silver Technical Analysis

The 12.00 level remains under pressure, although it has not been tested in the Tuesday session. The next support level is at 10.50, which is protecting the 10.00 level, which has psychological significance. On the upside, there is resistance at 14.00, followed by resistance at 14.50.

 

Silver 1-Day Chart
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