Silver Price Forecast – Silver markets volatile and skittish on FridaySilver markets dropped rather drastically during the day on Friday as the US dollar strengthened against the British pound. This was because of the Teresa May statement that there might be a no deal Brexit, and that of course spooked a lot of currency traders. The rising dollar of course work against the value of silver, but then we turned around and bounce just as violently on the opposite direction.
Silver markets broke down during the day on Friday, reaching down to the $14.20 level before turning around to show signs of life again. That’s a very unhappy looking chart from what I can see, and that tells me that although we are continuing to show signs of strength, there’s also a lot of confusion this market. All you have to do is look at the Gold markets and realize that they are flashing much more negativity than the silver market. Because of this, I think there’s a lot of uncertainty, but I think that given enough time it’s likely that these markets will simply follow the US dollar. The Silver markets tend to be very volatile and a little less easy to navigate at times than the gold market. Because of this, I tend to buy silver in its physical form more than anything else. However, if you have the ability to trade the CFD market, just keep your position size small regardless of what happens as you could have gotten slapped around during the day rather quickly.
Ultimately, this is a market that is going to move drastically based upon the value of the greenback, and the easiest way to pay attention to it is using the EUR/USD pair as a proxy as it is the largest dollar-denominated currency pair. It should move in roughly the same manner.