Silver futures hit the highest price since mid-February this week touting an impressive rally from April lows, powered in part by investors moving towards safe haven assets and fiscal spending. Silver typically lags as a precious metal behind gold and for this reason tends to be more volatile, its use in an industrial setting makes it primed to be sensitive to the global economy. We have seen traders continue to be bullish on silver as extremely low interest rates and countries re-opening their economy as made the metal more attractive. Silver making another high while broader market uncertainties still exist and continues to trade at a discount to other metals should be supportive to prices. Traders will be watching in the coming months for signs of inflation and monetary overspending.
July silver has resistance at $17.95, if we seem some early pressure into the session we will need to see Silver hold $17.45, otherwise we may see a move lower. Profit targets for July Silver remain at $18.20 on the upside and $17.15 to the downside. Momentum indicators point to a short term pullback which will need to be watch when trading towards these areas of support and resistance on the July contract.