The December silver contract opened the week with a big down day, breaking through support of 26.60 and 24.91. We saw the market continue lower throughout the week as it followed the stock market lower, both being pushed by the rising US dollar. There was a glimmer of hope on Thursday when the market closed green despite putting in the weekly low. This morning Dec silver is off its overnight lows but still negative for the day. Although the Fed said this week they will continue to do whatever is necessary, Powell looked to Congress to provide fiscal support for the economy which shows that there could be continued demand destruction and negative views towards physical commodities. The rally in the US dollar looks to continue which will give silver bears the edge in the coming weeks ahead, especially if Trump enacts tariffs against China as mentioned this week. The December silver contract needs to hold above 22.55 as a break of that would likely cause a washout to 19.80 and then 18.00 if the move lower continues. The bulls are wanting to see trade above what now is resistance at 24.91 to regain the trend to the upside. Right now with all the uncertainty in the upcoming election, possible economic slowing, and rising U.S. dollar all signs point to the bears being in control for the time being.

Silver Dec ’20 Daily Chart

800-826-2270312-373-5099Series 3 Licensed

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.
Read More