Silver is Fishing For SupportPosted 11/08/2019 10:06AM CT |
December silver is trying to find support as it pressured by improved trade talk. The gold/silver ratio is around 86.60 relative to what it was in July of this year, hitting approximately 93.39 on weekly bases and the most recent low 79.30. Given the sizable long position on silver, any bearish news will force weak longs to exit the market. One aspect to pay attention to in commodities is that they have been heading higher since they made recent lows in Oct 2019. What I’m referring to is the (Thomson Reuters/CoreCommodity CRB index: google it). My thought is that down the road, as broad commodity index rise, inflation could creep up to support the metals, silver will benefit from it. Silver traders should pay close attention to inflation readings.
From a technical perspective, a closer look shows that momentum is turning down. A close above 18.00 is needed for new fresh longs to come into this market. The COT will be released this afternoon from the measured on Tuesday. We shall see the long reductions.