Silver markets continue to bounce around and struggle with resistance just above

Silver markets continue to go sideways overall, as the $16.50 level has been far too resistive to overcome. The US dollar has been strengthening, and that has put a significant amount of bearish pressure on silver in general, as precious metals of course are sensitive to the greenback as they are priced in those very same dollars. · FX Empire

Christopher Lewis

Updated Tue, May 8, 2018, 9:54 PM

The Silver markets went sideways in general, as Tuesday proved to be somewhat more of the same as the $16.50 level has offered a significant resistance, but towards the end of the day we are starting to see more selling pressure. I think that the market probably will continue to drift a little bit lower, but the $16 level underneath is the “floor” in the market from what I see. Silver tends to be very volatile and sensitive to the greenback, and with what I think will be a very dollar positive summer for the greenback, I think Silver will continue to be very sluggish to say the least.

I think that the market will still respect the $15.50 level underneath as the major “floor” in the longer-term consolidation area, so I don’t think that we will break down below there anytime soon. I think that every time we dip it’s a nice buying opportunity, but I would keep leverage low which is sound advice in silver to begin with. Silver is extraordinarily volatile under the best the conditions, so therefore I think we are looking for value to continue to build up a longer-term investment in silver going forward. There is high demand for silver, but this market is extraordinarily manipulated to the downside by various banks, which of course are “paper short” the physical. Someday, that will work against them as fears of a lack of underlying could come into play. That day will be extraordinarily profitable for the bullish, but nobody knows when that occurs. That is what makes this a great investment, not necessarily a trade.