RJO FuturesCast

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Metals

Silver Futures Struggle to Base a Bottom

Posted 05/16/2019 10:26AM CT | Frank J. Cholly

Even after the recent bounce in gold futures, the silver market is still looking weak. For the July futures contract, I think $14.60 support needs to hold or there’s a good chance for another leg down. I don’t see much in terms of support until $14.35 to $14.25 range. This metal, currently, is not being viewed as a “safe-haven” trade. No doubt there is plenty of uncertainty to go around between the US and China trade negotiations and the strength or weakness in the US and Global economies. However, silver can’t rely on Geo Politics for support. If gold manages to climb back towards $1,350 then I would expect that silver could claw its way back towards $16.00. I think that that these are still good long-term value levels in silver, but until something more fundamental changes the landscape for silver it looks to be stuck under $15.00 for the foreseeable future.

Silver Jul ’19 Weekly Chart

Silver Jul '19 Weekly Chart

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Frank J. Cholly

Senior Market Strategist
Frank brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker.
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