Silver markets have gone back and forth during the trading session on Tuesday as we continue to see a lot of choppy behavior. Ultimately, this is a market that I think will continue to be very choppy as we are trying to kill time after a huge move to the upside. The market will have to deal with the Federal Reserve still, and that of course will work against the value of the greenback. If the US dollar continues to lose value, that is very likely that the precious metals will continue to be a major benefactor. That being the case, I think that there is plenty of support near the $22 level, just as there is a significant amount of resistance at the $26 level.
SILVER Video 05.08.20
At this point in time, I think that we are killing time in order to find value and perhaps get used to the idea of being at this rather high level. Ultimately, the market participants will continue to see a lot of value in silver, but we need to see an opportunity, not just start buying at these highs. The market has a hard “floor” in it down at the $20 level, so as long as we can stay above that level, it is almost impossible to imagine shorting this market. Furthermore, it is not until the Federal Reserve changes its attitude that silver will be something that can be sold for a bigger move. In other words, it is a matter of either being long in the market or waiting for a dip to start buying.
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This article was originally posted on FX Empire
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