Silver markets had a volatile session on Monday as we initially fell, but found enough support near the $15.20 level to find the market bouncing towards the $15.60 level. Ultimately, I believe that the market continues to go higher, looking for the $16 level. Either way, I don’t have any interest in buying this market, as the US dollar has been strengthening overall, and there are a certain number of influential factors working against precious metals overall. I believe that the $16 level will be a massive resistance barrier that the market will not be a will to break. I still believe that we are reaching towards the $15 level longer term which is a much more significant level on the longer-term charts.
Federal Reserve
The Federal Reserve looks likely to continue raising interest rates, and that typically works against precious metals anyway. So, on this scenario, I am a seller on short-term rallies that show signs of exhaustion. I think that exhaustive candles are a reason to jump into the market and pick up “value” in the US dollar. Quite frankly, this point I don’t see anything picking up silver unless of course we have a sudden geopolitical problem, which of course is possible. This could come out of North Korea, Syria, Iran, Qatar, or a whole host of other places. I believe that given enough time, the markets will find headlines that could pick up silver, but longer-term I think that we still have quite a bit of bearish pressure. I would not be buying silver at all in this scenario, and even if I did, it would certainly not be in a leveraged situation. I believe that physical silver might be an investment that you can take advantage of, but that’s longer-term to say the least.