Silver Price Forecast – Silver markets continue to struggle with strong dollar

The US dollar rallied a bit during the trading session on Friday, as we continue to be afraid of almost everything. Because of this, Silver paid the price as precious metals are so highly sensitive to greenback strength. However, we are testing major levels in various currencies, so I think that the silver market may find some support again near the $14.50 level. However, if we break down this will lead the next leg lower. · FX Empire

Christopher Lewis

Updated Fri, Aug 31, 2018, 10:47 PM

Silver markets continue to be very noisy, but at the end of the day mostly negative. Longer-term, this is an area that should be rather supportive, and I think there will be plenty of buyers of physical silver in this range. Leveraged positions remain very dangerous in this type of environment, as we continue to see major swings and volatility. On the whole, I do not like buying levered positions at this point, because the entire financial system seems to be running on rumors and headlines more than anything else right now. Whether or not there is more demand for silver than there is production is totally irrelevant at this point.

However, longer-term I really do like silver and cannot stress enough how much I think it has in the way of potential. Overall, the market will continue to be noisy, and that could lead to a lot of panic selling. At the end of the day though, if you can keep leverage out of the program, you can benefit greatly from the longer-term move that I think will start to occur. If we can break above the $15 level, the market could go to the $17 level, but obviously we need the US dollar cool off in the process. Until then, selling short-term rallies in the CFD or futures market continues to be the way.