Weaker Silver Prices ContinuePosted 08/31/2018 8:45AM CT |
Silver futures are continuing to remain under pressure taking cues from markets like copper and gold. The biggest headwind silver faces are the 200 billion dollars in tariffs imposed on China. This has essentially crushed the scrap metal business causing inventories to pile up in the United States. In addition, business expansion and growth in China has come to a complete halt. Keep an eye on the dollar index and rising interest rates. I still expect two more interest rate hikes this year with the first in September and second in December then two more in 2019. Looking at the technical on a daily silver chart it still looks like the path of least resistance is lower with $14.40 as a target. Looking at momentum indicators, stochastics are turning lower and MACD confirm the downtrend is in place. Silver remains below most major moving averages and ADX indicates that silver is in a strong downtrend. Where the bear market took control was back on August 15th where di- crossed over di+ giving you a strong signal.