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Silver Price Forecast – Silver markets recover after initially selling off

Christopher Lewis

The silver market fell significantly during the trading session on Monday to kick off the week, breaking below the $70.00 level. At this point, it’s obvious that the market is probably going to find buyers on dips, and that makes quite a bit of sense considering that the central banks around the world continue to ease monetary policy. This drives up demand for “hard money”, and I would also point out that I see massive support levels underneath. The $16.50 level is the next major support barrier, followed by the 50 day EMA which is painted in red on the chart.

SILVER Video 20.08.19

At this point, I believe that the market will continue to go higher, perhaps reaching towards the $17.50 level and then eventually the $80 level which is my longer-term target. Keep in mind that there is a lot of noise in the silver market at this region, so I think we will continue to see a lot of back-and-forth. We do have a potential catalyst later this week though, as the Jackson Hole Symposium is going on in Wyoming. That is a meeting of all of the major central bankers around the world, and there are plenty of statements that follow and therefore it’s likely that we will have some type of catalyst to drive precious metals higher. Russia’s metals of the first place money goes looking to win interest rates continue to drop, and therefore I think that dynamic will continue to play out in the marketplace. I am looking to pick up precious metals every time they dip as they will become “cheap.”

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This article was originally posted on FX Empire

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