Silver Price Forecast – Silver markets pulled back towards supportSilver markets initially spent the day going higher on Tuesday, but then pulled back to find support. The market looks likely to continue to be very noisy, but overall I believe that this will be driven by the US dollar more than anything else. Ultimately, this is a market that I think will show a lot of choppiness.
Silver is a very difficult market to trade at times, because it becomes so choppy and of course is into as liquid as the gold market. This can cause major spikes in price, so using a small position is most definitely preferable, or if you have the ability to trade CFD markets, that works out well also. This allows you to be very cautious about your position size, which can cause major problems. If you have the ability to use CFD markets, I highly recommended. However, if you do not there is also the possibility of buying physical silver as well, but that’s more of a longer-term trade. I do believe that silver will continue to go higher as the fears of a trade war abate, and perhaps the US dollar softens a bit, but obviously it’s going to be a very rocky move to the upside but then again, that’s normal.
The $15 level above will continue to cause fits for buyers, but if we can clear that the market should turn around and go much higher and perhaps towards the $17 level over the longer-term. I believe there is a massive amount of support at the $14 level, so I would not hesitate to buy down at that level as well. I have no interest in shorting Silver, although I certainly recognize that we can fall from here. Over the last few years, this would be considered very low levels.