Silver Price Outlook – Silver Continues to See Buyers on Dips

Silver Technical Analysis

The silver market has initially pulled back a bit after gapping higher on Tuesday and then shot straight up in the air. This is interesting because we have the $33 level continuing to be important. And I think this is something that you need to pay close attention to. All things being equal, I do think that silver will try to go to the $35 level, but it may take some time to get there. There are a lot of concerns out there that I think will continue to push the markets around and therefore you need to pay close attention to the latest statement coming out of the White House or what the US dollar is doing. It’s all tied in together. And if we get a situation where the US dollar starts to fall again, that could help silver.

On the other hand, though, you can also make the argument that silver is an industrial metal and that, of course, has a major sensitivity to global growth. If the trade tariff situation gets even worse, that could make silver a little suppressed. I don’t necessarily expect it to fall off the cliff, but I do recognize that it does mean that silver will be lagging. Short-term pullbacks should, in theory at least, end up being buying opportunities, and I think that continues to be the play here. You are just simply waiting to see whether or not you can find some value that you can take advantage of.

I don’t necessarily think that we have a scenario where silver is something that you want to short, at least not until we break down below $32 at the very least, if not the 200-day EMA. I do think we’ll get to the $35 level eventually. but it just may take some time.

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