Silver Weekly Price Forecast – Silver Markets Show Signs of ExhaustionSilver markets rallied rather stringently during the week but have shown signs of exhaustion near the $18 level.
Silver markets rallied significantly during the week, reaching towards the $18 level. The $18 level was the beginning of significant resistance, and the scene of massive selling in the past. The fact that we have given back so many of the gains during the week suggests that we could in fact roll over towards the $16 level. Expect a lot of noise but quite frankly I think there are plenty of reasons to think that the confusion persists. The exhaustion is a sign of the fact that the silver markets are driven by not only the precious metals trade, but also the industrial demand.
SILVER Video 25.05.20
It is because of this I think that the most popular trade going forward is probably going to be a bit of a “spread trade”, or people are buying gold in selling silver. Unfortunately, far too many traders on the retail side look at silver as a safety asset when it clearly is not. In fact, although it can be thought of as a precious metal trade, the industrial portion of silver seems to be much more important, and that of course is going to be very suspect at this point. With that in mind, I believe in fading silver and I do think that eventually the market will pull back a bit at the very least. I am not necessarily looking for some type of massive blowup in this market, just that we had gotten far too ahead of ourselves.