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Silver prices have room to run on the upside, too

Kitco News

(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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.