Silver Sellers BewarePosted 08/16/2019 8:46AM CT |
September silver is approaching expiration here in 11 days. Technical setup continues to favor the bull camp. In my view correction is to be bought, not sold into. In other words, if you are not set up already in the market on the long side, wait for a correction. What I find impressive for the metals, and especially silver, is that it is relatively strong despite the strength in the U.S. dollar. The U.S. dollar had a big technical uplift yesterday at it takes out multi-day highs and silver is also going for the ride. This is largely due to the new negative yield lows in the German bund, weakening the interest differentials for the Euro and leading to strength in the dollar. While a strong dollar can be bearish for metals, such as silver, metals are seeing strength as bond yields fall.
With headlines full of twists and turns, as we are dealing with China to work out a trade deal, upside potential for silver could exceed $20.00 or more. To keep it simple, there is just a lot of news that keeps silver bulls confident that they could see more upside…