Silver

Gold and silver are doing exactly what you’d expect after breaking long-running resistance. And that's before you consider fundamentals such as geopolitics, central bank purchases, limited mine development, rising inflation expectations and troubling fiscal outlooks from some of the world’s largest economies.

After the rapid repricing of Fed rate cut expectations, US economic exceptionalism is now arguably already priced into the US dollar, leaving little room for downside disappointment in upcoming US economic data.

Welcome to another edition of Technical Tuesday, a weekly report where we highlight some of the most interesting markets that will hopefully appease technical analysts and traders alike. In this week’s report, we will get technical on precious metals.

Gold, silver and copper all rally as US dollar drops despite hot inflation, with base metals finding additional boost from optimism about Chinese demand. Silver analysis suggests the grey metal could be in for more gains, while gold analysis point to a new record high.

Silver has recorded its largest gain in months, sparking plenty of excitement on social media and other investment platforms that the move may be the start of a prolonged price rally.

Welcome to another edition of Technical Tuesday, a weekly report where we highlight some of the most interesting markets that will hopefully appease technical analysts and traders alike. In this week’s report, we will analysis gold and silver following last week’s bullish price action.

Gold and silver should remain supported on the dips amid peak interest rates narrative, with the latter likely to be more active given that we are in a positive market environment with stocks also rising.

US inflation turned out to be weaker than expected on both the headline and core fronts, and the market’s response was a swift one. We saw gold and silver rise, as yields and the dollar dropped, while index futures jumped with the pace of the rally gaining further momentum once the cash markets opened on Wall Street.

Gold has not formed a bearish reversal signal yet, although silver’s sharp drop today may be a warning for what’s to come.

Silver prices have rallied nearly 40% since the September low, yet key resistance looms around $25 and a multi-week bearish divergence is forming.

The most traded commodities are energy sources like oil and gas, plus metals such as gold and agricultural products. Here we break down the top ten most traded commodities and explain how each one is traded.

Out of the two metals, silver was the most impressive as it jumped over 7%, the most since Feb 2021

Out of the two metals, silver was the most impressive as it jumped over 7%, the most since Feb 2021

Compared to gold, silver has managed to rise very strongly on the session, up more than 5% so far.

Perhaps a bit of basing and consolidation is needed for the metal to gear up for a clean breakout above $1800.

Yesterday’s bullish price action suggests there could be further upside for silver over the near-term.

We are seeing some mild dollar selling ahead of FOMC, which is boosting the appeal of precious metals, yen and franc