Silver Price Forecast – Silver markets finds support again on TuesdayThe silver market initially pulled back during trading on Tuesday as the EUR/USD pair broke down, showing US dollar strength. However, by the time the Americans came on board things turned around and it looks as if precious metals are starting to get a bit of a bid.
Silver markets initially pulled back during the trading session on Tuesday, reaching towards the $14.30 level before bouncing as we did on Monday as well. The candle stick is grinding its way higher, and I think we are trying to put a bit of a short-term bottom in the market, and I think that it could set up a nice buying opportunity if you are cautious. I recognize that the market will probably continue to see plenty of value hunting on these dips, but if we broke down below the $14.30 level, I think at that point were probably looking at a test of the $14.25 level, and then possibly the $14 level. Remember, silver is highly sensitive to the US dollar and tends to move in opposite directions. At this point, it looks as if we are forming a bit of a double bottom, so I would anticipate buying on the dips should continue to work.
The EUR/USD pair is the easiest way to track the value of the US dollar, as it is the majority of the US Dollar Index anyway. Pay attention to that currency pair, it should lead the way for silver going forward. Ultimately, I think that we will probably see a move towards the $14.60 level, and then possibly even the $14.75 level over the longer-term. This is a market that is highly volatile though, so keep that in mind and keep your position size relatively small.