Silver markets continue to be very choppy and sideways, and therefore a bit undecided. I think at this point we are just simply deciding whether or not the recent gains are justifiable. If the US dollar strengthens, that will probably drive down the price of silver, perhaps down to the $14.50 level. The alternate scenario of course is that we rally, but I think the $15 level above is going to be a major barrier to get above. I think longer-term traders believe it will happen, and I certainly think it will eventually, but in the meantime it’s going to be difficult. I think at this point we are looking at consolidation between $14.60 level and the bottom, and $14.80 level on the top.
Remember, Silver markets are extraordinarily sensitive to the US dollar, and if the US dollar starts to strengthen silver will come undone much quicker than gold will at times. The $14.50 level will obviously attract a lot of attention as well, so we could see a bit of value hunting in that area. Currently, I think the markets are waiting to see what the FOMC Meeting Minutes are going to say, which of course is after I am recording this, and that could have a major influence on what happens with the US dollar.
That being the case, I think we are still in a range but clearly we have some barriers that we could end break above or break down below to decide where to go next. I think at this point it’s likely that the markets will hold up in that usual manner.
SILVER Video 18.10.18
This article was originally posted on FX Empire
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