Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Continues The Charge
May 26, 2021 - (Gold Market Wire) - Silver is pushing higher out of Asia this morning and getting ready to take on the major overhead resistance we see in the chart. The trend line is in tact, and the market is strong.
Its a nearly perfect picture of a bull market in full flow...with one big challenge left before we may rip to new highs. This morning's action (in the chart above) already looks like a gap higher, and the steadiness of the rally, with classic pullbacks through April, and especially May, is a sign of real strength. This isn't the helium filled rally that dissipates - but the one that follows through.
US Dollar weakness is helping, no doubt, but there really hasn't bee any extraordinary volatility. If the US Dollar turns higher, will we see Gold sell-off? That is the question on all minds. At GMW we believe any such sell-off will be muted. We've taken on almost 20% from the lows, in Silver, where the eur/usd diff has seen barely a 4% shift. Yes, it's a 'diff', so the movement won't have the same absolute value, but we think this indicates a precious metals market that is not as enslaved to the fx market as many think. The Metals are strong, in and of themselves. That is likely to continue, going forward.
For now, we hold all length. There is no reason for selling, not even minor profit taking on leveraged longs is on the cards yet. The posture is about as bullish as one gets in the trading environment, although we still will take it a day at a time.