Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Opening
Silver Recovery Faces Chart Challenges
April 5, 2021 - (Gold Market Wire) - Silver is staging a minor recovery this European a.m., with a possible reversal development banging into horizontal resistance. The chart lays out the picture.
$25.04 marks the horizontal hurdle, and we should look for that to be cleared and the trend line to be regained before looking for a set-up. Those two objectives are a mere $.50 away....but as the chart shows, moving early has been a curse for the past two months, while patience has paid off handsomely. The day has been won, so far, by those who hugged the sidelines, because they haven't been bled. A cast back to December in the above chart will show us the importance of the area just below $24. Falling underneath the area will likely lead us back to $22. The investor crowd should be ready to put on length here and wait with some patience, while the traders should wait for more confirmation. The bearish sentiment in the market is looking like it may have ebbed.
If we move on to add the power downtrend, which has been the bane of the bulls, we see some light emerging.
So we start with a mixed bag this morning, after the long holiday. We note that Gold has held the recent low of $1686, fairly alongside Silver's low, and that should also be taken as a positive.
On the negative side of the positive price picture, one would be remiss if mention wasn't made of the serious moves by Russia to send advanced artillery into Crimea on the periphery of Ukraine/Donbass border. This strategic move has been encouraged by a Ukrainian parliament/leadership which is making dangerous ruminiations about trying to re-take Crimea from Russia; a causus belli if there ever was one. Crimea and its strategic role to Russia is a red line of the utmost, primary importance, and it will be defended by Moscow to the point of full-scale war - regardless if anyone believes such a thing is justified. That is simple strategic calculus. Crimea is also, linguistically, and ethnically, Russian. Washington knows this.
Any attempt to position NATO troops in Ukraine, regardless of any type of "invitation" by the Ukranian government, is going to set the world on the edge of WW III, with all the horrific potential on both sides.
This alone may be drawing a line under the bottom of the precious metals sell-off.