This week we saw silver trade to the upper end of the sideways range its been in since the second half of September. With positive moves higher on Tuesday, Wednesday, and Thursday, The Jan silver contract reached a weekly high of 26.20, a level not seen in over a month. This week’s rally had many bullish factors, reports of progress on a US stimulus package, continued pressure on the US dollar, and a dovish take away from this week’s FOMC meeting. The Fed looks to continue asset purchases and let inflation run which is supportive for both gold and silver. There has been a little bit of a pullback to start Friday’s session with the market unable to extend this week’s gain through support at this time. With the weakening dollar, low rates, and the Fed not looking to curtail inflation a longer-term rally in silver could be developing. We would need to see this rally continue up to the next resistance point of 27.50. First support comes in around 25.15 and if that level is broke expect the market to trade down to around 24.00 to 24.50.

Silver Jan ’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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