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Silver Weekly Price Forecast – Silver Markets Crater

Christopher Lewis
·2 min read

Silver markets initially rally during the week, but then got absolutely slaughtered as risk appetite around the world continues to crater due to the coronavirus. The silver markets selling off on a sign of lowered industrial demand, and quite frankly probably some forced liquidation as traders need to raise capital to cover margin in other markets. There have been horrific losses in other assets so sometimes traders need to shift funds around, and this is especially true in situations like we have right now.

SILVER Video 02.03.20

To the downside, the $16.00 level underneath offers a lot of support, so I think that might be where the market goes looking to find buyers. The candlestick closing as low as it has during the week shows just how much negativity there is, as the bloodshed on the world’s exchanges hasn’t ended. I fully anticipate that we will continue to go lower, and any rally at this point will probably be sold into on signs of exhaustion.

However, if central banks around the world start cutting rates, and I suspect that could happen over the weekend, that might have the opposite effect in this market in sending precious metals higher. It is a bit of a guess at this point, but that certainly would be the type of wildcard that could change things. This weekend is going to be crucial as to where we go next, and the world’s central banks are most certainly on notice at this point. Ultimately, there are probably more losses but eventually silver will offer a bit of value, which again I suspect is closer to the $16.00 level underneath. At that point in time it might be a longer-term “buy-and-hold” scenario.

This article was originally posted on FX Empire

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