Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Christopher Lewis

Silver markets continue to grind back and forth, reacting to the idea of what is going on in the US dollar, and therefore I think it is worth paying attention to the US Dollar Index, as it tends to have a rather negative correlation to the silver market as of late. In other words, if the US dollar starts to rally, that works against silver. Having said that, you can see that we have fallen rather hard over the last month or so, only to bounce again. I think we probably still have further to go to the downside, especially as there is so much in the way of concern.

SILVER Video 15.10.20

Silver is a precious metal, but unfortunately it also has more of an industrial component as well. In other words, the demand for silver is a very real thing, unlike gold which although gold does have a bit of industrial demand, it pales in comparison to silver. With that being said, silver does tend to be a lot more fragile than gold when it comes to the robustness of the trade. Looking at this chart, I think if we break down below the $24 level, we are likely to go to the $23 level, followed by the $22 level. Quite frankly, I could see this market reaching all the way down to the $20 level, which is essentially what I considered to be the “floor the market.”

The best way to treat silver at this point I think is the trade officer the US dollar, and then only in small positions the board of a longer-term bullish position. I do think that it is only a matter of time before silver takes off, mainly due to what central banks are going to quantitative easing matters. That being said, be cautious about jumping “all in.”

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.