Silver markets pulled back a bit during the trading session on Thursday as we reached towards the $23 level early in the day. Ultimately, silver was being affected by a stronger US dollar, but that is a temporary situation. Quite frankly, this is a market that you should never consider selling, at least not anytime soon and considering that the Federal Reserve is looking to liquefy the markets going forward, it is a bit difficult to understand how somebody with think shorting silver is a good idea. Yes, it will probably fall rather hard at one point or another, but ultimately, we should see the buyers takeover. I think looking for dips makes the most sense and I would be especially interested near the $22 level.
SILVER Video 31.07.20
The $20 level underneath should continue to be very supportive, and if we would somehow get down there it is likely that we could find plenty of buying pressure. I think at this point the Federal Reserve will continue to add liquidity to the markets, driving down the value of the US dollar. That in turn drives up the value of precious metals and I think that is essentially what we are looking at here.
Longer-term, I think that the silver markets go much higher, but we may need to cool off a bit in order to attract more value oriented traders. I have no interest in shorting this market, regardless of what it does next. At the very least we need to consolidate a bit before picking up the pace again. Longer-term, silver is going to go much higher.
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