The silver market initially pulled back during the week, finding support underneath at $17.00 level. With that in mind, it’s very likely that we continue to try to go higher but we have not broken above the $17.50 level, so we haven’t necessarily made the breakout yet. Ultimately, this is a market that the buyers have control of, as we continue to see monetary policy loosened by central banks around the world. If that’s going to be the case, then obviously you can’t be selling precious metals anytime soon. This doesn’t mean we go straight through the roof though, and I do anticipate quite a bit of volatility going forward.
SILVER Video 26.08.19
I believe that the $16.50 level continues to be massive support, and therefore I would be a bit surprised to see this market break down through there. I think weekly traders are probably going to need to drill down to shorter time frames in order to take advantage of short-term pullbacks to trade with the longer-term trend. That being said, if we do get a break above the $17.50 level it would be another move to the upside just waiting to happen, reaching towards the $18.00 level. I expect a lot of volatility, but at the end of the day the silver market will continue to move right along with risk appetite, and as we have become much more “risk off” these days, it makes sense that precious metals continue to attract a significant flow of money. If for some reason we break down below the $16.50 level, it would be rather negative turn of events but it doesn’t look very likely right now.
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This article was originally posted on FX Empire
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