Silver markets went back and forth during the trading session on Thursday, as we continue to see a lot of choppiness in general. Ultimately, the Silver markets are essentially trying to figure out whether or not they are comfortable enough with the idea of being above $17. I think they are, and at this point any pullback should be thought of as a buying opportunity. That of course will continue to be the way going forward, because quite frankly central banks around the world look likely to continue cutting rates and easing monetary policy, and that of course drives money into precious metals.
SILVER Video 16.08.19
I believe that the $16.50 level is support, just as the $16.00 level is. The 50 day EMA is currently at the $16.00 level, so I think that’s essentially your “floor” in the market. Ultimately, this is a market that I think does go higher but we may need to take a little bit of a break as we are at extremes currently. I like the idea of buying pullbacks as it offers value in a market that has obviously changed its attitude. With the Federal Reserve joining the fray of central banks around the world looking to cut rates and ease monetary policy, there’s really no reason to think that precious metals will pullback for any significant move. We would have to see a complete turnaround and the central bank policy around the world to make that happen. I believe that the silver market is probably then going to go to the $18.00 level above.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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