Silver Weekly Price Forecast – Silver drifts lower for the weekSilver markets drifted a bit lower during the week, initially trying to break above the $16 level before finding more negativity. However, there is a major demand that level just below, and I think it’s only a matter of time before the buyers step in and pick this thing out.
Silver markets initially tried to rally during the week but found the area above the $16 level to be a bit to expensive. We look likely to go towards the $15.50 level, this is an area that has had a massive amount of demand attached to it. If we were to break down below that level, it’s very likely that we could go to the $15 level where more buyers would wait.
I believe that the market should eventually turn around, as this is an area of major demand, but we will have to see how the US dollar behaves overall in the meantime. The attitude of market participants continues to be one of apathy, at least on the short-term charts. Longer-term though, I think that there are a lot of value hunters in this area looking to pick up silver for investments. After all, there are a lot of concerns when it comes to debt around the world, and of course it could be a shock to the system which of course makes precious metals attractive.
Pay attention to the US dollar, this could have a major influence on where we go next, but I think ultimately demand will be the big picture item to pay attention to hear. You can see a massive hammer from July of last year at this level, and this shows to be that there is a lot of institutional demand just underneath.