Silver - outlook still uncertain for now

Gold and silver made significant gains this morning in an otherwise featureless trading session. Both have built on last week’s late recovery. As with other risk assets, gold and silver shot higher on Thursday following the release of a better-than-expected weekly Unemployment Claims number. This helped them to make back losses from earlier in the week following the big ‘risk-off’ move in Monday. Gold is comfortably above $2,400 and not a million miles away from July’s all-time high of $2,483. Meanwhile, silver was up 1.8% in early trade, and just a few cents below $28 per ounce. That’s a promising start to the week for both metals. Gold should pick up buying interest if it goes on to hit a fresh record. But silver really needs to get back above $30 to reignite interest. It remains very oversold, and it’s from positions like this that sharp rallies can develop. Yet there remains a danger that it takes another dip lower and retest support just below $26. But there are some signs that sentiment is improving when looking at the shorter, while less reliable, MACD time periods.