With astonishing job growth in January, unemployment risk is coming off and keeping silver in check. The trading “risk” from coronavirus is fading. So, all the supportive news that supported silver in the past week has been coming off, leaving it in tight consolidation. The only way I see silver heading higher is if we see inflation creep up. I fear that the impact of the coronavirus has not translated into the dollar; therefore it is hard to know if we will be in an inflationary environment. If anything, I see the risk of short-term deflation.

Technically, silver is looking into more consolidation; below is the gold/silver ratio chart and it suggests that gold is cheap as and is more likely to outperform silver in the coming days. The ratio is poised to go above 90, which means gold will be worth nine-fold.