Silver markets continue to grind lower on Monday, as we are testing the $16 handle now. I believe that this level could be supportive, but it’s likely that we break down below $16, will probably go looking towards $15. The US dollar strengthening of course does no favors for silver, and therefore think that it’s only a matter of time before we do make than breakdown. A bounce above the $16.50 level would be very bullish though, and could send this market much higher. In the meantime, I am a seller of silver as I do not think that the US dollars in a turnaround in the short-term due to the stronger than anticipated jobs number on Friday.
Federal Reserve
The Federal Reserve outlook for interest rate hikes is strong in short, so I think it’s probably going to continue to favor the US dollar over precious metals. If we can break down below the $15 level, the silver market will probably come unwound and could go as low as $12 over the longer-term. Unlike gold, silver does have a bit of an industrial aspect to it, but I don’t think that’s going to help. I believe silver is probably going to be on the back but for a while.