The Silver markets initially trying to grind sideways in general, but we broke down below the $16 level to show signs of weakness. Because of this, if we can break down below the $15.75 level, the market should then go down to the $15.50 level underneath, and then the $15 level after that. I think that rallies that show signs of exhaustion will be a nice selling opportunity. Alternately, if we do break above the $16.25 level, the market should then go to the $16.50 level after that. The silver market of course is very sensitive to risk appetite, and of course the value of the US dollar which will get quite a bit of news today in the form of the Nonfarm Payroll announcement.
Ultimately, this market will follow Gold
Ultimately, I believe that the Silver markets will follow Gold in general, as precious metals tend to travel in the same direction. With the jobs number coming out during the day, that will of course have a massive influence on interest rate expectations coming out of the Federal Reserve, which has a knock-on effect over in the precious metal sector. Silver is a lot less liquid than gold, and that makes sense that the moves in the silver market will be much quicker and more volatile than the yellow metal.
The choppiness will continue, it typically does in the silver market, and I believe that there is much more support near the $15 level that could turn things around for the longer-term move. I believe that buying physical silver near $15 might be a nice play longer-term, but in the meantime, it looks like we are probably more likely to see choppiness with a slightly negative bias than anything else. I will revisit the silver market after the jobs announcement.
SILVER Video 07.7.17
This article was originally posted on FX Empire