Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
August 14, 2020 - (Gold Market Wire) - We start off this Friday with a look at Silver's overall technical picture for the short-term. As we can see from the chart below there are a few objectives at work that remain unresolved, so it is little wonder the market is drifting right now.
We have two tightly knit horizontal support lines pointed out in the chart, which we need to hold on the close today. We remain outside the trend, but the line has been touched, indicating, if nothing else, its accuracy. That is the second challange. Lastly, there is our downtrending resistance just above $28 which we also need to clear. So, two horizontal lines to hold, a trend line to regain and a resistance to clear. It may seem like a lot, but they are all merged into a tight area, meaning that a move through will be a strong signal for us. The 3rd horizontal of some importance, $26.89, is the one we are sitting on right now. We are congested at the moment, and the market has no clear short term inclination, so it is difficult. Those who picked up their "free champagne" at the Shakers Ball might use any small rallies to take some money off the table - it is, after all, better than 10% for a couple days effort, which shouldn't be sneezed at.
On the big picture front, there is no sign to the end of the chaos that is coarsing through western world politics. Conflict and self-destruction are the orders of the day, and as each one of those 24 hour periods passes it increasingly looks like this Presidential election will solve nothing. It was the Democrats who raised the specter of "Not My President", so they can hardly blanche if the reverse happens. When elections are no longer respected, it means the system has cracked and proverbial Rubicon has been crossed.
That is where we are, and that is not going to change until some fairly momenteous, historical things hapen first - none of which look likely to be very nice. The Western world is going through a retrenchment phase of brutal challanges to its legitimacy from every political angle thinkable. It seems unlikely that harmony will return any time soon. If the level of internal conflict doesn't moderate promptly, the "hand-off" to an econmoically insurgent Asia will be complete, and the West will suffer the fate that all previous predominating world powers and cultures have suffered - internal collapse. Sadly, it appears we are well on the way towards just that, and one struggles to see what will stop it over the next decade. Historically, the last phase before the collapse is one of brutal repression. It would be hard to deny that the framework for such a repression seems to have been set in motion.