Silver Price Forecast – Silver markets find demand early on ThursdaySilver markets found a bit of demand during the trading session on Thursday, with an emphasis on the $15.75 level. This is an area that of course has a certain amount of market memory attached to it, as we had been supported over the last couple of days in this region. The market looks likely to try to go higher from here, but I also recognize that there is a lot of supply just above. In other words, this remains a short-term traders type of environment.
Silver markets bounced slightly during the trading session on Thursday, as the $15.75 level has offered a bit of support. This is the same area that had offered demand for silver last week, so it now looks as if we are seeing a bit of “market memory” attached to this market place. I think that ultimately this is a marketplace that should continue to find a lot of resistance at the $16.15 level as well, an area that we had sold off from previously.
If we were to break above that level, then the market is free to go to the $16.50 level. Silver markets continue to be very noisy, but that’s nothing new to anyone who has been trading silver for more than about five minutes. I believe that the market will ultimately turn around and go higher, because I see so much in the way of demand at lower levels, especially starting at the $15.50 level and extending down to the $15 level. However, as market participants watch the headlines, the US dollar will move in this market should move in the opposite direction overall. Keep that in mind and pay attention to the US Dollar Index. If you have the ability to buy large amounts of silver unlevered, you may want to think about that as well.