Silver markets have drifted a little bit during the trading session on Wednesday, reaching down towards the $24 level. This is an area that of course will attract a little bit of attention due to the fact that it is a large, round, psychologically significant figure but at the end of the day I think we are still in a very bullish marketplace. I think the biggest problem we have here is that silver simply got way too far ahead of itself, and therefore it makes a bit of sense that we may see the market give back some of the gains. Markets do not go straight up in the air forever, and I think that is what people who are stepping into buy silver at this level are about to learn.
SILVER Video 30.07.20
The FOMC will course attract a lot of attention, as the Federal Reserve will be releasing its FOMC statement, which is of course going to move the value of the US dollar. The US dollar obviously has an influence on where precious metals go, especially silver which is a much thinner market than gold. At this point, I would love to see silver pull back towards the $22 level, perhaps even the $20 level so that I can pick up “cheap silver” at those levels. This will flush a lot of the “weak hands” out of the marketplace, and then we will be able to build a longer-term base for higher pricing. I do believe that we go much higher, but we cannot go up there in a straight line.
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