Silver Price Forecast – Silver Markets Hover at Major Level

Silver markets did very little during the trading session on Friday after forming a shooting star on Thursday. While this might be construed as a potential issue, the reality is that the markets are simply exhausted as it took a lot of effort to break through the $19 level finally. As we head into the weekend, it makes quite a bit of sense that traders may be on the sidelines in order to keep the books flat to avoid potential headline risk.

SILVER Video 13.07.20

Importantly for silver, it does have an industrial component so it is worth paying attention to. Ultimately, this is a market that I think will have a lot of noise involved in it, so at this point one would have to think that we are going to see a bit of a lag in the silver market when compared to gold. They are both moving on the precious metals trade though, as central banks around the world continue to show the proclivity to ease monetary policy regardless. With that being the case, I think that silver does rally but if you are looking to play the precious metals trade you are probably better off looking at the gold market for a bit of alpha.

To the downside I see plenty of support areas, namely the $18.70 level, the $18.56 level, and most certainly the $18.00 level. The 50 day EMA is reaching higher and it does look as if we are trying to complete the move to $20.

This article was originally posted on FX Empire

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