Silver Price Forecast – Silver markets rally on optimismSilver markets rally during the trading session on Thursday due to optimism coming out of the idea that the Chinese are coming to the United States and talking about trade. This gave the markets a break from US dollar strength, which of course has a direct effect on precious metals.
Silver markets broke above the $14.50 level during the trading session on Thursday, as optimism entered the market due to the Chinese sending a delegation to the United States to discuss trade policy. This has alleviated some of the pressure on the world’s global markets, thereby allowing the US dollar to soften. However, I would warn that this is probably a short-term phenomenon, as the initial problems that had people going into the dollar are still very much a real issue. At this point, I suspect that the sellers will come back above, perhaps close to the $14.75 level, and certainly at the $15.00 level. I anticipate that even if we do get a short-term rally, it will only be a matter time before somebody says something to spook the markets again. They have been quite jittery as of late, and we would need a couple of days’ worth of good news to move things in the right direction.
You all know that I am bullish of silver longer-term, but I also recognize that there are serious forces at play here, and therefore I would be a bit cautious about putting too much money into the market in one shot. I believe that the market will continue to react to global headlines more than anything else, and by extension the US dollar. Ultimately, I believe this to be a situation where we will continue to see serious trouble. Longer-term though, I do by physical silver all the time.