Silver Price Forecast – Silver rallies to kick off the weekSilver markets rallied again to kick off the week, as we continue to struggle with the $15 level above. If we can clear that area, then the market goes much higher. I think at this point we could get pullbacks, but this pullback should be supported underneath, so keep that in mind.
Silver markets rallied to kick off the week and continue to show signs of life. I think at this point it’s all about the US dollar, and the great proxy or even secondary indicator for this market is what the EUR/USD pair is doing. If it is rallying, then typically silver will rally as well as it works against the value of the dollar. I think pullbacks will find plenty of support near the $14.75 level, and I do think eventually we will try to break above the $17 handle. Until then, expect a lot of volatility but that’s nothing new for the silver market as it tends to move around quite rapidly.
Unless there’s some type of “risk off” event, I think that the value hunters are coming back into silver for longer-term move, and I certainly have been buying physical silver occasionally at these low levels recognizing that historically it is cheap when measured in both gold and US dollars, adjusted for inflation. Short-term traders should probably keep the position size small as the volatility will be rather drastic, but ultimately I do think that we are trying to form some type of bottoming pattern. Longer-term charts dictate that there is a lot of support underneath at the $14 level as well, so keep that in mind. Overall, value hunting seems to be the name of the game in the Silver markets over the last couple of weeks.