Silver Price Forecast – Silver Continues to Look Hesitant
NEW YORK (October 10) Silver has had a little bit of the hesitation during the trading session on Tuesday, as the bond markets have reopened in the United States. Obviously, this has a major influence on most markets, as the world worries about inflation. Silver is a little bit different than gold in the sense that it is an industrial metal, so therefore it does become quite a bit more volatile at times. However, I also recognize that the US dollar will be a major driver as to where we go next. With this, I think you got a situation where we have to look at this through the prism of risk appetite and industrial usage. Pay close attention to the greenback, because if it starts to move, this market typically has the reverse move.
Looking at this chart, the $22.33 area is the beginning of significant market memory from the previous consolidation area. At this point, the market is likely to see a lot of noisy behavior, and I would anticipate quite a bit of exhaustion. At this point, I think the market is likely to continue to be more or less “fade the rally”, as the world continues to deal with high interest rates, which of course is toxic for gold, and most other assets. Underneath, the $21 level is a major support level we had bounced from previously. If we were to break down below there, then it’s likely that we could go down to the $20 level. The $20 level course is a large, round, psychologically significant figure, and a lot of people will be paying close attention to it.
Ultimately, I would anticipate a lot of volatility in the silver market, as is typical, and of course we are at a bit of a crossroads when it comes to risk appetite and the directionality of the markets overall. Because of this, you need to be cautious with your position sizing, and recognize that there are a lot of dangers out there at the moment, and silver is typically one of the more dangerous markets regardless. Safety at the moment is going to be paramount, and I do prefer dealing with gold markets rather than silver, as silver is so much more volatile.
FXEmpire
