Silver prices have room to run on the upside, too
(Kitco News) - The silver market has not seen the strong gains recently that has “big brother” gold. It’s likely that traders and investors look at silver as both an industrial metal and a safe-haven store of value. The industrial metal view of silver suggests the coronavirus pandemic, and the potential slowdown in the world’s economy because of it, could constrain the silver market bulls in the coming months.
See on the monthly continuation chart for nearby silver futures that prices have been trapped in a sideways trading range for over four years, as seen by the support and resistance lines on the chart.
A move in silver prices above the aforementioned trading range, meaning a push above longer-term technical resistance at the $20.75 area, would be a longer-term bullish development that would then suggest silver prices have much more room to run on the upside.
If gold prices continue to trend higher in the coming months, which the charts do suggest, then it’s also a good bet that silver prices will appreciate, too.