Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Feels the Heat
September 3, 2020 - (Gold Market Wire) - Silver remains under pressure, as both of yesterday's horizontal supports have given way. We are checking in with the longer term technical position to draw some conclusions about exiting the market from length if it comes under sustained pressure. Right now Gold is still more or less flat for the day, and we continue to run length even though we are offside. The opening in New York will be critical.
The Chart for Silver:
Not a pretty picture. In fact, a picture that could start to make the gap up look like a supreme head fake. We'll need some action to the upside either today or by the close tomorrow for us to continue with length. It could be developing that the correction everyone was waiting for is about to materialize, but we'll wait to see the shake out. Right now we'll focus on the horizontal support, to see if we need to close out the position.
Buying into the move has come back to cause problems, and the gap up we had appeared as a buying opportunity - which it still might be - is causing trouble for the position. We are only slightly under water, but we still must recognize that chasing that gap has caused us to reassess. That's why we never use margin in Silver. Those with limited tolerance can lighten up now and wait for the next support at $26.28, if it comes, to close, or try and find a move up to lighten. We are staying with our length, but only just. If the market doesn't recover soon we will start cutting down on rallies.