Silver continues to see a lot of buying pressure on Tuesday as the markets continue to see a lot of buyers driving this market higher, regardless of overbought conditions.
Silver continues to see a lot of buying pressure on Tuesday after initially pulling back, which makes a certain amount of sense considering that the Consumer Price Index month-over-month numbers came out lower than anticipated, suggesting that perhaps the Federal Reserve is likely going to continue to see reasons to cut rates. So that provides a little bit more in the way of reasons for precious metals to go higher.
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That being said, silver has a whole plethora of reasons right now why it is going higher, not the least of which is a physical supply shortage. But I am not going to lie to you, there has been a physical supply shortage for at least 5 years, if not longer. This is something that has been a known issue for most of my career over the last 20 years, so it is interesting that we are just now seeing that play out.
Market Outlook and Price Targets
Short-term pullbacks, I do think end up being buying opportunities, and I do think at this juncture the $80 level could end up being support as it was previous resistance.
Ultimately, this is a market that I think will try to find its way above the $90 level, and then it is only a matter of time before we get to $100.
The biggest problem with silver at the moment is finding an entry point because I can assure you that one of the biggest fears for traders will be buying it at 88 and then unloading it at 55. You do not want that, and that is a very real possibility in this type of environment.
Silver, of course, remains bullish, and I imagine the floor is much higher than it once was for longer-term swings, but as things stand right now, it is impossible to short this market. Eventually, something will happen, and this will break. I suspect we are getting closer to that, but it looks like a market that desperately wants to at least attempt to get to $100 an ounce.
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