Silver Price Forecast – Silver Markets Pull BackSilver markets pulled back just a bit during the trading session on Monday, as we continue to hover around the $18.00 level. That being said, that is a good sign, as it is a large, round, psychologically significant figure.
Silver markets pulled back just a bit during the trading session on Monday to kick off the week, as we continue to hover around the $18.00 level. The large, round, psychologically significant figure of course will attract a lot of attention, as it has shown signs of support. Ultimately, if we pull down below there, I see the 50 day EMA underneath offering quite a bit of support. At this point, the silver market will continue to move to risk aversion or risk appetite, which is a fluid situation.
SILVER Video 14.01.20
Overall, we have shown quite a bit of resistance above, so I think at this point what we are going to do is see a lot of choppiness. A bit of consolidation might be the best way to go going forward, but if we break down below the 50 day EMA then I think we go looking towards the $17.00 level. With that being the case, I think that you will need to be very cautious about jumping “all in” when it comes to this market, but I do think that there are enough tensions out there that we will eventually see a bit of a boost for precious metals in general, which of course will have an influence on silver itself. I am bullish longer term but recognize that a pullback may be necessary in the short term, as tensions have calm down between the United States and Iran, and of course the Americans and the Chinese. Given a bit of time though, it will all come back and we will continue to see safe haven buying.
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