The silver market pulled back this week after failing to push over last Friday’s high of 24.92 during Monday’s trade. December silver corrected back to support at 24 and has pushed lower to 23.77 to start Friday’s trading session. A decline in the US dollar on Thursday failed to give the silver market much of any strength although today’s recovery has pressured the silver market lower today. Fundamentally the silver market is torn with the metals markets unable to extend gains with fears that a slowing economy will provide pressure to the downside. On the other side, we saw the lowest initial jobless claim since March which would signal the economy is still recovering. Then we have inflation talks with some calling for new all-time highs for the metal markets in 2022. In stocks this week we saw mixed trade with big misses in earnings from both Apple and Amazon have some thinking the stock market could be due for a correction which could cause some more interest in the metals market. The silver bulls need to see December silver close back above the 24 level or at a minimum find a support level and trade sideways for another push higher. The Bear camp wants to see a close under the 24 level with follow through lower next week to extend this move lower. Support comes in below the market with 23.20 and 22.50 being the next levels the market could find support. Resistance comes in at 24 and then last Friday’s high of 24.92. The market isn’t showing a direction it wants to go with any conviction right now but it looks like whichever side of 24 it can hold is going to determine the markets short term trend.

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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