Top Story

Silver turns positive after again testing key support

Both gold and silver prices have been undermined recently by the ongoing rally in the stock markets, with investors preferring the racier equities over the perceived-haven metals. However, with the US dollar struggling for direction and global central banks all turning dovish recently, I continue to believe that the downside is limited for precious metals and a surprise recovery could be on the cards soon. As such, I am keeping a close eye on both metals for possible bullish reversal signals. Today, we may have seen a possible low form in silver, although further price action is needed to confirm this potential reversal signal.

The price of silver fell earlier to its lowest level in 2019, reaching $14.85, before turning around to turn green on the day. Gold has likewise recovered from its session lows to trade near the day’s highs at the time of writing. Silver found support from the $14.80-$15.00 long-term pivotal area, which we have previously highlighted as being a technically important region. Silver bulls will need to push the price of the metal above its most recent high of $15.35, hit just last week, in order to regain further control. If that were to happen, I would turn decidedly bullish on the metal for then we will have our first higher high. However, if silver fails to achieve that and eventually drops below the aforementioned support area beneath $14.80, then in that case I would drop my bullish view on the metal.


Source: TradingView and FOREX.com.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

Open an Account