Silver Weekly Price Forecast – Silver Continues to See Buyers This Past Week

Silver Markets Weekly Technical Analysis

The silver market initially fell during the week but has turned around to show signs of life. At this point in time, the market is likely to continue going higher as the $31 level has now been taken out to the upside. The $30 level underneath should offer plenty of support, just as the $28.50 level should. I do think silver probably eventually goes higher if for no other reason than inflation. The Federal Reserve are loosening money in what they consider to be a hot economy and has no other outcome.

Ultimately, interest rates dropping does drive up the demand for precious metals anyways, and even though silver is also an industrial metal, that seems to be what we’re following. I would anticipate a bit of a pullback though, and that pullback will more likely than not attract a lot of attention. This is a market that continues to be very noisy, but I also recognize that it’s almost impossible to short the market at this area.

The market has been reacting to interest rates and the US dollar, as well as the idea of just the US dollar crumbling. But if we get a sudden risk off move, silver will get hammered if for no other reason than to lay out the case for recovering some liquidity to protect traders from other losses. That being said, I think that it still favors the upside right now but keep an eye on sudden signs of panic because a 50 basis point interest rate cut is not a very common occurrence, and it generally precedes something bad.

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