Silver Price Forecast – Silver markets rally on dollar weaknessSilver markets rally during the day on Thursday as the US dollar loss quite a bit of ground against the couple of currencies. This was due to the idea that the Brexit talks are progressing quite nicely, but since then we’ve seen some conflicting reports. With that being the case, expect even more volatility.
Silver markets continue to be very noisy but did get a bit of a boost during trading on Wednesday, as we have seen reports coming out that the Germans and the British may both be softening their stance a bit when it comes to the Brexit. If that’s the case, then expect the EUR/USD and the GBP/USD pairs to continue to rally, which of course puts downward pressure on the greenback overall, and therefore upward pressure on precious metals. However, I see a lot of concern with silver, especially near the $14.50 level, an area I think that is going to be drastically resistive. It’s selling signs of exhaustion near that level will continue to probably be the easiest trade to take, thereby allowing the market to breathe a bit, and giving you an opportunity to jump on what has been a strong trend.
However, I do continue to buy physical silver as I believe it is a value and a bargain down at these low levels. With that being the case, I believe that physical silver as a buying, but leverage silver, be it in the futures or the CFD markets are difficult positions to own. The $14 level is crucial, and if it gives way we could drop as low as $12 rather quickly. I think at this point, volatility is about the only thing you can probably count on. Keep your position size small.