Silver Price Forecast – Silver markets pulled back following FOMCThe Silver markets pulled back a bit during the trading session on Wednesday as we awaited the FOMC statement. Ultimately, this is a market that I think will be highly sensitive to what goes on with the US dollar.
Silver markets were very volatile during the trading session on Wednesday, showing signs of indecision ahead of the FOMC statement. This makes a lot of sense though, because quite frankly while we do anticipate higher interest rates coming out of the United States and therefore possibly a stronger dollar, it will be the tone of the statement the people will be paying the most attention to. Overall though, the $14.40 level is support, but I think that if we break down below that level, it’s likely that we could go to the $14.30 level after that. Overall though, I think the one thing you can count on is a lot of back-and-forth with the market pain attention to every $0.10.
I think longer term we go much higher, and therefore I have been buying physical silver. However, the levered markets are a bit more complicated than that, as we have seen so much in the way of support and resistance at various levels. I think that overall the market is one that you buy on dips now, as the $14 level has shown itself to be massive in its support. If we were to break down below the $14 level, that would be nothing short of catastrophic for silver, perhaps opening the door to the $12 level. At this point though I think it’s very unlikely and I think it’s more likely that we would go towards the $15 level where I expect to see a huge fight at that point.