Silver Price Forecast – Silver markets hammered on Tuesday

Silver markets have been hammered on Tuesday as we continue to worry about trade tariffs between the United States and China, and an escalation of the potential trade war. Silver of course is greatly influenced by the US dollar as the commodity is bought in that currency, and the US dollar has of course been gaining value in a bit of a fear trade. I think that the market will continue to be very noisy overall, but I anticipate that if we can break above the $16.60 level, then silver will start to rally and recuperate some of the recent losses.

Until then, the market is likely to be more of a “sell the rallies” type of situation for short-term traders. Longer-term I still believe in silver, but I think again, one should keep away from leverage and unless they are trying to play the short-term charts. Market participants are probably best served buying physical silver, or at least a small CFD position if you have a large enough account, then futures markets could work, but they tend to be a lot more dangerous in these types of environments. Above $16.60, I would have more faith in larger move. Until then, I think we are going to see a lot of erratic trading, and it gets me thinking about buying value at lower levels as I think the $16 level below is massive support based upon longer-term charts.

SILVER Video 20.06.18