Last week’s end of week pullback kept pressure on the silver market this week, trading in an 83 ½ cent range where both extremes were seen during Thursday’s session. We are seeing an increase in gold demand from China which normally should be favorable for the precious metals but even with that year over year increase, global demand is still lacking with the US and Europe seeing declines. Silver got some support with President Biden’s speech this week but better than expected US GDP data caused a rise in US yields and the dollar which added pressure. The Fed continues to state that there is no inflation risk as they have the necessary tools to control it. It seems that with every piece of bullish fundamental news that we get, the silver market fails to get any real footing for a push higher and remains coiling in a sideways range. The bulls need to see a push above 26.75 to regain the trend higher while a break of support at 25.75 would likely see a move down to the 24.90-25.20 range. Things to keep an eye on next week are a speech from Fed Chairman Powell on Monday and nonfarm payrolls to end the week.

Silver Jul ’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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