Silver Strives to Break Above $29.86

Silver Prices Reports : Raising the margins investors must post to trade is a familiar move by CME, the world’s biggest futures and commodities-centric market, when it aims to head off unusual market stress and volatility.

Silver yesterday settled down by 8.31% at 67541 as a GameStop-style buying spree among small investors that took prices to a near eight-year peak appeared to fizzle out following a margin hike by the Chicago Mercantile Exchange.

CME Group raised maintenance margins on Comex 5000 Silver Futures by 17.9%, and posts on the WallStreetBets Reddit forum at the centre of the past week’s action argued for traders to steer clear of the metal.

  • Silver fell as a GameStop-style buying spree among small investors that took prices higher appeared to fizzle out following a margin hike by CME.
  • Why is silver dropping in price?
  • CME Group raised maintenance margins on Comex 5000 Silver Futures by 17.9%.
  • The current gold/silver ratio is “well below historical averages, and investors may recognize this level as straying too far from historical norms”.

The current gold/silver ratio is “well below historical averages, and investors may recognize this level as straying too far from historical norms”.India slashed import duties on gold and silver in a surprise move that industry officials say could bring down smuggling of the precious metal.

Presenting the Union Budget for 2021-22, Finance Minister Nirmala Sitharaman has slashed the import duties on gold and silver to 7.5 percent from 12.5 percent.

Partly reflecting a spike in spending on residential construction, the Commerce Department released a report showing U.S. construction spending increased by slightly more than expected in the month of December.

Silver is undergoing a concerted effort to resume its core uptrend with silver resuming its outperformance trend to gold as expected by strategists at Credit Suisse.

What is Silver’s all time high price?

“Silver maintains a multi-year base and we look for a sustained move above $29.86 to confirm a bullish ‘triangle’ continuation pattern to see the range resolved higher for a resumption of the core uptrend, with resistance next at the 50% retracement of the 2011/2020 bear market at $30.72, with our core objective still at $35.23/35.365 – the 61.8% retracement and key high from October 2012.” “Support at $24.05 needs to hold to keep the immediate risk higher.”

“The Gold/Silver ratio has resolved its range from August to the downside as expected for the completion of a bearish continuation pattern and we look for a fresh and significant move lower again in the ratio and Silver outperformance and a fall to 51.47.”

Estimated reading time: 3 minutes

Silver Strives to Break Above $29.86 via @goldsilverrepor
  • Save

Leave a Comment

309 views
Share via
Copy link