September silver has traded adjacent to the strength in gold, and the second wave of the virus could very well add more support in the contract. Prices have rallied significantly from March, so a consolidation at these levels would be warranted. That being said, safe haven demand remains steady, and interest rates in this environment make this fundamentally sound and attractive to traders and investors alike. It should be noted that inflation data will also be closely watched as a key fundamental, the more that the Federal Reserve acts to prevent other market declines through fiscal policies we will see undermining and destruction longer term in other market prices.

September silver is undergoing consolidation and the $18.00-dollar level remains in focus as a key level of support for bulls. If this level fails to hold, consolidation may not be intact, and a test of the $17.80 level will be tested. In order to see the contract trade at the $19.00-dollar level and beyond we will need to test $18.70 and $18.90.

Silver Sep ’20 Daily Chart
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Tyler Herrmann

Senior Market Strategist

Tyler attended Kansas State University where he majored in Agricultural Economics. He started his career in the futures industry with an IB in North East Kansas where he worked with farmers and cattleman to hedge their risk in the market and protect profits with a variety of futures and options strategies. Most recently Tyler has joined RJO Futures as a market strategist.

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