Silver markets have continued to struggle in general, as we see quite a bit of pressure every time we try to rally. That being said, the $22.50 level underneath should be very difficult to break through. Ultimately, if we were to break down below that level could open up massive selling when it comes to the silver market. It is worth noting that gold is trying to save itself, while silver does not seem to be bothered. This makes a certain amount of sense as gold is a reactionary metal to inflation, while silver is more of an industrial metal. Because of this, I think we continue to see a lot of divergence between the two metals, so you cannot use one chart to give you a “heads up” on another one.
SILVER Video 02.12.21
If we break above the highs of the trading session, we still have a couple of long wicks that reached all the way towards the $23.60 level, so it is really not until we break above that level that you can make an argument for strength. You would also need to see the US dollar get absolutely clobbered, which is not necessarily the case at the moment. When I look at this chart, I think it will more than likely continue to be a “fade the rallies” situation over the next several days. Keep in mind that Friday is the jobs number, and that of course will have people looking at the likelihood of more demand coming into the picture. Because of this, this is a market that I think will have to be paid close attention to.
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This article was originally posted on FX Empire