Silver markets fell rather drastically during the trading session on Tuesday, after initially trying to reach towards the $17.25 level. We fell all the way down to the $16.85 level, an area that has been supportive in the past. Ultimately, this makes for a very ominous sign, as the market should continue to go lower from here. A breakdown below the $16.80 level sends this market looking towards the $16.50 level after that. I think that the market is starting to price in a stronger US dollar, and that continues to work against the value of precious metals overall. Because of this, I have no interest in trying to buy silver anytime soon, I think it will certainly soften from here. Even if it doesn’t, and precious metals continue to grind higher, gold almost always outperform silver in these times.
The negativity I see in this chart cannot be overstated, as we have had a massively disappointed set of buyers during the day. Once we break down, we could see an acceleration of an already quickly moving market to the downside, which of course could be rather drastic. I believe that the market continues to favor the greenback going forward, especially considering that there are so many concerns geopolitically around the world. Not the least of these concerns of course is going to be the German elections, which showed just how divided that the European Union may be. Ultimately, I think with the rising US dollar, it’s going to be very difficult for precious metals to catch some type of break in the short term. Longer-term, we may have some type of “risk off” event that helps precious metals, the right now we just don’t have it. If we broke above the $17.25 level, then I would be convinced.
SILVER Video 27.9.17
This article was originally posted on FX Empire
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