Silver Price Forecast – Silver markets break down towards support

Silver markets broke down rather significantly during the trading session on Thursday, reaching down towards the $16.00 level underneath. That is a large, round, psychologically significant figure that will of course attract a lot of attention.
Christopher Lewis
Silver daily chart, August 02, 2019

Silver markets have gapped lower during the trading session on Thursday, and then raced towards the $16.00 level underneath. That of course is a large, round, psychologically significant figure, and an area that has attracted a lot of attention in the past. With that being the case I like the idea of buying signs of support but I also recognize that Friday is the jobs figures coming out of the United States so it’s likely that we will continue to see a lot of volatility between now and that announcement.

SILVER Video 02.08.19

All things being equal though with central banks around the world looking to cut interest rates I do think that what we are looking at is a scenario where precious metals should continue to gain due to loose monetary policy. I like silver, but I also like gold so either one of these financial markets work in this type of scenario. I believe that we are starting to see value area present itself so it’s very likely that silver will rally from here and go looking towards the highs again. Even if we did break down, I think that the 50 day EMA will be the next area that attracts a lot of attention which is currently just above the $15.55 level.

I have no interest in shorting Silver or gold, because quite frankly monetary policy out there around the world is going to dictate that you try to keep invested in hard money in order to protect your wealth. Going forward, I fully anticipate that silver will test the $70.00 level.

Please let us know what you think in the comments below

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