Silver Weekly Price Forecast – Silver Continues to See Selling

Silver Markets Weekly Technical Analysis

The silver market has plunged lower during the course of the trading sessions that make up this past week, as we are now well below the $28.50 level. At this point, we are starting to pay attention to whether or not the support underneath gets tested with the $26.50 level coming into play. That was an area that had massive resistance previously, so one would assume that a bit of market memory is probably found here. If we can turn around and break above the $28.50 level, then it’s likely that the market will go looking to the $31.50 level over the longer term.

Keep an eye on the US dollar because if it starts to strengthen, that could work against the silver market. And of course, pay attention to gold. While gold isn’t necessarily the same market, it does tend to eventually move in the same direction with silver and of course, vice versa. Interest rates of course come into play as well and if they start to drop, then it makes metals a little bit more attractive.

But again, that’s more of a gold story than it is silver. Remember, silver is also an industrial metal, so you have to be very cautious and recognize that industrial and commercial demand comes into play as well and can cause a bit of noise occasionally. However, I believe at this point in time you are better off watching the gold market, and occasionally look at this market for any real shot at turning things around.

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