Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Tries to Define a Bottom
June 23, 2021 - (Gold Market Wire) - Silver is trying to find its footing around the $25.80 level and move back up. It's early days in this new environment, but the chart shows that this is not an un-natural place for the market to try and get its footing. In fact, the level has some decent history behind it.
It's a reasonable place to bounce and, moreover an important place to hold, if we're not going to work lower. Zooming in we get:
First and foremost is to stabilize the market, and then see if we can't get some lift-off for a higher move. Not unexpectedly, our (small) purchase at $26.00 went under-water, as we thought it might. And its now come back. We're prepared to add more at $25.00 if we get there. All eyes are on the US Dollar (likely to remain strong), but, perhaps even more, the equity markets, which are flat-lining these days, and looking like they could weaken. If they do, we could get another move down in the metals, and it's one reason why we are keeping things small on the trading book.
There's little we can do but wait and watch the action. Any abrupt moves higher should prompt us to take profit, as the market looks like it could get choppy. What we'd prefer is for a proper trend line to develop.