This week we saw the December silver market continue its move higher, adding to gains from last week after trading down to 23.045 on Wednesday Nov 3rd. Silver posted a new weekly high of 25.39 before trading lower to start today’s session. Silver managed to move higher despite a rally in the US dollar to 95.270 and a pullback in stocks on Tuesday and Wednesday. The metals market’s move higher this week, even with everything that should have added pressure, is showing that the inflation trade is really starting to develop and looks to be here to stay. The US CPI report showed inflation at a 30-year high on Wednesday which increases the chances that the Fed will be forced to raise US rates much sooner than originally expected. The bulls have the advantage here but need to see continued buying to push above the next resistance level of 26. Bears need to see a close below 24.89 which would reverse the short-term trend and leave 24 as the next downside objective. As of now the bulls are in the driver’s seat and a rally through the 26 level would leave 28 as the next upside target.

Silver Dec ’21 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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