Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Follows Through
July 2, 2021 - (Gold Market Wire) - Silver is following through today, countering yesterday's market, which looked like a breakout gone wrong. We still have the close ahead of us, but if we can stabilize at these levels, and finish the week-on-week action in positive territory, that will be a boon to the Metals market. Today's action (so far) has taken us to horizontal resistance and almost to the point of the rising resistance seen in the first chart.
If we add in the horizontal today's action becomes clearer.
As we look back over the duration of the above chart, we can see the importance of this $26.55 level. More often than not, we have pivoted around here, so it's going to be an interesting battle into the close, and next week as well. At the risk of repeating ourselves, and annoying the Bugs, we note that the US Dollar continues its move higher, which has been no impediment to the Metals' recovery. It has been a horrible week for the Euro, with week on week negative action and five solid days of downside action. That failure to get above 1.2350, as we have said so often, looks like the real deal. The second half of the year bodes poorly for the Euro and those who believe the US Dollar is going to suddenly collapse in a heap.
So, the rising Dollar caused the metals to pause, but still they have managed a recovery alongside it. All of this is decent news for the Metals bulls, but must also temper enthusiasm in the short-term, as another big Dollar surge might limit upside progress. With that consideration, we hold our length of 50% of the position we've been running, awaiting the close. We'd like to see how Silver takes on the horizontal resistance before committing any more length.