RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Silver Shining in the New Year

Posted 01/04/2019 7:31AM CT | Eli Tesfaye

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

Silver Weekly Chart

800-367-7290312-373-5394Series 3 Licensed

Eli Tesfaye

Senior Market Strategist
Eli started his career in the futures and options market while he was in graduate school finishing up his MBA in 2003. Eli specializes in Automatic trading strategies and systematic options trading strategies in futures market. He has been Series 3 license holder since 2005. Eli's is an avid reader, runner, and yoga practitioner.
Read More