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Silver Weekly Price Forecast – Silver continues to drift lower

By:
Christopher Lewis
Updated: Sep 1, 2018, 05:27 UTC

Silver markets fell again during the week, as we continue to test the $14.50 level. This is a market that has been sold off rather relentlessly, as the US dollar has been strengthening.

Silver weekly chart, September 03, 2018

Silver markets have broken decidedly below the $15 level again, and now it looks as if we are testing the $14.50 level. While I am bullish of silver longer-term, I am bullish of physical silver, not paper assets. Because of this, I don’t believe in buying CFD or futures markets, but given a choice I would certainly be in the CFD markets right now as the futures markets are going to be extraordinarily volatile and dangerous. Beyond that, they are flat-out expensive.

The $14.50 level has been support more than once, so if we break down below there I think we go looking towards the next significant level, the $14 handle. However, if we can break above the $15 level, I think we could gain $0.50, and then perhaps even move all the way to the $17 level longer-term. However, this will not happen until we get the strength in the US dollar rolling over, something that doesn’t look ready to happen quite yet. I believe that the next few weeks will probably continue to be buried for silver, but ultimately we should find buyers somewhere below here. This is why I buy physical silver, because losing a dollar on 10 ounces isn’t a huge hit to my personal finances. However, losing a dollar on 10 contracts is an entirely different conversation. Silver is a very dangerous market to play in large quantities, so while I like it, I’m not quite that brave. $14 has caused a major bounce recently, so will have to see whether or not history repeats itself.

SILVER Video 03.09.18

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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