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Finally! Silver Is Doing Some Heavy Lifting

Commentaries & Views

Finally! Silver Is Doing Some Heavy Lifting

Yesterday’s close: Settled at 1411.2, down 2.3

Fundamentals: Gold continues its constructive battle despite yesterday’s Dollar strength on the heels of better Retail Sales data. Lifting sentiment towards the metal this morning is a resilient Treasury complex overnight followed by poor U.S housing data. The price action in Silver cannot go unnoticed as it trades at four-month highs; Silver is finally doing some of the heavy lifting for the complex. Overall, pullbacks in Gold have been sharp in recent years partly due to the lack of interest in Silver. Fed Chair Powell stayed the course yesterday confirming expectations for the Fed to cut later this month. Large banks have also hopped on-board with expectations mounting for a 50 basis points cut.

Technicals: Price action hit a low of 1401.3 overnight and this comes after a soft tape yesterday held 1408-1408.5 on a closing basis. In fact, this extremely choppy price action is exactly what we have referred to as seeing constructive closes; an initial low of 1403.7 before ripping to 1414.8 ahead of settlement and back to a new session low of 1402.1. The tape battled above 1400 overnight and is attempting to solidify a near-term floor. A close above 1413.4-1414.3 today will favor the bull camp in the near-term.

Bias: Neutral/Bullish

Resistance: 1420.5-1420.9**, 1432.9***, 1484.5***

Pivot: 1413.4-1414.3

Support: 1408-1408.5***, 1400.5-1403.5**, 1389.3-1392.6**, 1377.5-1380.3***, 1361.5***

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