December silver is trading at $14.090, down 19 cents on the day. The morning’s financial news is mainly focusing on the G20 meeting, as the new North America trade deal is signed. There is news to come out of the potential agreement between U.S. and China. Potential affects of the trade deal made at the G20 between U.S. and China, could be a pop in silver price. Otherwise, to expect a downside pressure forcing silver to breach 14.00 level.
The daily chart coming into this session suggests that 14.00 would most likely be taken out. The potential of G20 adverse outcome has overshadowed all the optimism for silver bulls over the indication that the U.S. Fed will slow interest rate hike.
The Gold/Silver ratio still the highest it’s ever been since early 1993 as per the monthly chart below. Gold is more expensive than silver. Again, from the technical perspective, Silver is fighting to hold above 14.00. For now, a close below 14.00 in the December futures will signal further weakness.
Gold Silver Ratio Monthly Chart