Front-month March silver is trading 15.795 up 14 cents on the day. As per the weekly chart below, silver has broken out of the consolidation that I talked about a couple weeks. Any retest of the consolidation area would be an opportunity as a buy rather than a sell in my view.
With the equity market breaking to the downside in the new year with “safe-heaven” investments, momentum favors the upside in markets. U.S. government shutdown continues, and it is in day 13. No resolution is in sight so far. As a result, the metals are firm as equities and the U.S. dollar index is under pressure. In the last blog, I said, “So far, silver is weak just like any other commodity but if the battle over government funding heats up, more upside likely.”
The Gold/Silver ratio is sitting at 82.05 from a recent high of 86.16 suggesting that “bid” for silver is improving relative to Gold.
Silver Weekly Chart