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Silver Price Forecast – Silver slightly up on Friday

By:
Christopher Lewis
Updated: Jun 30, 2018, 03:48 GMT+00:00

Silver markets rallied a bit during the day on Friday, reaching towards the $16.10 level as I record this. However, there is a significant amount of resistance above, so one would have to believe it’s only a matter of time before the sellers come back.

Silver daily chart, July 02, 2018

Silver markets rallied a bit during the day on Friday as there was a bit of a “risk on” rally, or perhaps just short covering ahead of the weekend. Market participants got a bit of good news as it appears the European Union is starting to work out the framework of a migration deal, which is a huge sticking point for some of the countries. This also could likely save Angela Merkel’s career, and the markets like that.

However, I think that the downtrend is very much intact, and when you look at the weekly chart, the candle stick is very negative and has broken below the bottom of a hammer from the previous week. Because of this, I think it’s only a matter of time before the sellers return, as silver has struggled. Nonetheless, I like silver from the longer-term perspective, but I would need to see it stabilize and perhaps break above the $16.50 level for a short-term buying. Back and forth with a slightly downward grind is what I would expect, so keep that in mind if you are short-term trader. For myself, I have been buying physical silver for some time, and that has not changed. I believe that these dips offer value for the longer-term “buy-and-hold” investors. Eventually, fiat currencies are all going to have issues, and gold and silver will be where people run to. Until then, I think we get a lot of noise based upon geopolitical issues.

SILVER Video 02.07.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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