September silver saw a big drop during Tuesday’s session, falling $4.58 off of better than expected U.S. PPI numbers and reports of a Russian COVID vaccine. The overnight session Tuesday/Wednesday posted a low for the week of 23.58, a level not seen since July 31st, before closing positive for the day and continuing to rebound on Thursday. This morning we have seen an initial pull back and the September silver market is currently trading at $26.77. Although the market started today lower it has managed to stay inside Thursday’s range and I feel we will need to hold Thursday’s low today in order to see a continued rally next week. I don’t think a pullback with the U.S. PPI, jobless claims, and vaccine news we saw this week is a bad thing. Especially with the recent run higher and momentum studies showing over bought levels in silver. The Fed is still not looking to raise rates until 2021, stimulus policies will continue, and the recovery from the virus is still going to be a longer term, slower process. Look for silver to continue its run higher in the coming weeks as volatility is here to stay in the near term as it retests recent highs and looks to break through resistance of $30.

Silver Sep ’20 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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