Silver Price Forecast – Silver gets pummeledSilver markets got sold off rather drastically during the trading session on Wednesday, after initially trying to regain the $14.80 level. We even broke down to the lows again but did find a little bit of support in that area.
I think that the $14.50 level will continue to be crucial, and I think it needs to be held unless of course the market is ready to go down to the $14 level. That’s a level that’s an extraordinarily important on longer-term charts, and as a result I think that there will be a lot of buying down there as well. I have been buying little bits and pieces of physical silver, but it is difficult to buy silver right now with a highly leveraged position, as it has been so volatile. However, I do think that eventually we will see a turnaround, but we need the US dollar to slow down its strength.
The biggest problem that were going to have right now as interest rates in the United States continue to climb, and that naturally will bring money into the greenback. Overall, I think that the Silver markets are extraordinarily cheap right now, and I think it’s only a matter of time before longer-term buyers come in and pick this market up again. However, this is a longer-term thought process, so if you are shorter term trader, and I suspect that most of you are, you are looking for short-term rallies to sell in the CFD market, especially near the $14.75 level. However, if we break above the $15 level that will more than likely send everything in the other direction, perhaps starting a nice intermediate uptrend. Pay attention to the US dollar, and the EUR/USD pair is a great proxy for that. If it rises, typically this will rise as well, and of course the opposite is true.