Silver Price Forecast – Silver Markets Plunge to End Week

Silver markets have initially tried to reach towards the $26 level but found resistance in that area. That being said, we have rolled over a bit to show signs of exhaustion. The market has not broken down below the massive candlestick from last week that showed significant selling pressure, and as a result it is likely that the market will probably find support underneath based upon previous action. That being said, the market has had a rough day on Friday, but when you look at the reasons, it is a bit more complex than simply pulling back from the $26 level.

SILVER

The 10 year notes started to cause havoc for traders in general, because rising interest rates would of course make the dollar a bit more attractive, and of course people are concerned about stimulus all of the sudden, as the size of the package may not be able to get through Congress. That being said, people are worried about the “size of the stimulus package”, and that of course could have the reflation trade going away, or perhaps more importantly simply being smaller.

Silver is a huge part of that, because not only is it a precious metal but it also has an industrial component built into it, so having said that it is likely that we will continue to see a lot of questions in general, and as a result it is likely that short-term pullbacks will continue to offer value from a longer-term standpoint, but at this point we are simply moving back and forth based upon the latest headlines as far as cheap money is concerned, which of course is typical for Wall Street.