Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Down 4% on New York Opening
February 26, 2021 - (Gold Market Wire) - Silver has taken another battering today on the New York opening, trading down as much as 4% on the day. We have now touched down on support, and are starting stabilize, intra-day.
Equities are generally lower, with the Dow Jones about .5% lower and NASDAQ marginally higher. At one point the Dow was off almost 2%. The stabilizing equity market and the touch down on support will certainly give the spec traders something to think about. The temptation is certainly there to put on speculative length, but Gold's breakdown through the channel we posted this morning should give an air of caution - or at least moderate any speculative length to very small size.
Our Gold/Silver ratio is still in the box we set out this European a.m., i.e., 64-66, and we have (nearly) touched both extremes in today's action.
This is going to be an important close. Do we rally into the final part of the trading day, or gap lower in the Metals? Lastly, we must mention that our long US Dollar patience has paid off. We have already gone below 1.21 intra-day. Yes, we didn't like the ride back above 1.22, but in truth, as we wrote on this site frequently over the past weeks, we have always felt strongly that a Dollar rally was in the offing and the preferred part of the trading book. As we closed our g/s ratio position earlier in the week, it is the only trading position we retain. There is a good chance now that the US Dollar retracement lower is in the rear-view mirror now, and we will work higher over time.