Silver is trading at its highest level for the day ahead of North American trading
With gold looking rather underwhelming to start the year, much attention in the precious metals arena has turned to silver (and platinum) – especially with the recent run in the former towards $ 30 to launch the new Year.
While this may have been largely driven by speculative positions capitalizing on the hype of the retail frenzy, it also serves as an acknowledgment of the underlying sentiment of money, i.e. the still market. looking for bullish bets.
By exploring the price action, buyers have short-term control as long as the price stays above the major hourly moving averages at $ 27.03-22. Additional support is then seen closer to $ 26.70-82 from last week’s lows.
Meanwhile, last week’s highs near $ 27.80 and the $ 28.00 level (50.0 retracement level) are key resistance points to focus on if the bullish move continues this. week.
The contrast between gold and silver is rather evident from the performance since the start of the year. While gold is down 4%, silver is up nearly 5% as the rally in the commodities space continues – helped by the reflation narrative returning this year as well.
Either way, I would say any pullback to $ 25- $ 26 is an option to buy as long as the current set of fundamentals remain in play for the money. The 100-day moving average also provides support closer to $ 25, if technical comfort is sought.