Silver May Test 22.40 Again Before Pull Back To The Upside.

12 août 2021

Gold and Silver always run in the same direction. 20/25 years back silver and gold had little divergence price gap. But the price gap between these two metals is really high. 250/300 years back gold and silver were only currency. though nowadays every country has its own currency and many digital currencies. but the necessity of Gold and Silver still exists.

Gold is the highest market cap asset in the world nearly $11.137 Trillion and Silver in rank number 7 and total market cap holding nearly $1.317 Trillion (according to 8marketcap).

Fundamental View

Fundamentally, Silver is under a bit of pressure because of a stronger USD. U.S labor market reports, FED's hawkish bias altogether favoring USD. Yesterday US inflation report came negative but Silver is unable to push up again. which is a sign of investors being still not ready to buy silver again. we will have to wait till next week how about the US economic reports perform. The pandemic is still not over yet. as a safe haven silver may be priced in again if the situation goes worse again.

Technical View

this week silver tested the 22.40 price zone which is September 2020 swing low area. Silver bounced from that price and still has a chance to test the 22.40 price zone again. As long as the silver price is below 24.50 to 25.50 rice zone selling scenario won't change.

24.50 could be a better selling zone with a 25.50 stop loss and target 22.50 price zone. breaking below 22.40/22.00 price zone, we can't go for the long-term sell.

on the other hand, if we see silver breaks above the 25.50 price zone, we may see another buying market. so, we will buy breaking above 25.50 price zone, target above the 28.00 price zone.