Silver Price Forecast – Silver Markets Pulled Back Slightly On Wednesday

Silver markets dropped a bit during the trading session on Wednesday, as we see quite a bit of noise out there. Ultimately, this is a market that has multiple reasons for going higher or lower, as you may know if you are a regular reader here at FX Empire. The most common use for silver isn’t necessarily precious metals but it is industrial in such components as electronics, etc. That being said though, there is a certain amount of precious metals aspect to the silver market.

SILVER Video 16.04.20

Silver markets continue to lag gold and probably will into the foreseeable future as gold is more of a safe haven play than silver. After all, silver is going to need that industrial production to pick up in order to drive the price of silver up for a longer-term move. Ultimately, I think that we are going to continue to see underperformance, and therefore although I am bullish of silver, I recognize that gold will do much better.

In the meantime, I believe that the market is going to continue to go back and forth between the $15 level on the bottom and the $16 level on the top. With that being the case, I think simple back-and-forth range bound trading probably works out best, but even if we did break down below these levels, I believe that the $14 level should also offer quite a bit of support. Don’t get me wrong, I am bullish silver over the longer term, but I think that the market is more than likely going to rise going forward but it’s the leverage that could get you into trouble.