RJO FuturesCast

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Metals

Silver – The Sleeping Giant Ready to Wake Up?

Posted 10/26/2018 8:21AM CT | Tom Beller

With all the uncertainty in the U.S. equities this week, and due to a combination of higher interest rate fears, a cloudy future with China, and the U.S. dollar continuing its advance higher, there seems to be good support here for silver and gold.  While silver had a modest week in terms of overall price from last Friday, many believe $1450 is the support and also the low that we will take and go from there. Some are worried that the economy, and there also happens to be news out that there is a lot of movement in the vaults for physical silver at the New York Commodity Exchange. 

The dollar posted another high on Thursday, while silver and the other metals have held their ground.  In other world news, trading started on October 1st in Mumbai, BSE Ltd after receiving approval to launch a delivery futures contract for 30kg. The European Central Bank (ECB) left their benchmark interest rates unchanged on Thursday. The GDP report was released Thursday morning, and showed the economy expanded by a 3.5% annual rate versus 3.4% expectation of analysts.  Even with all the growth we have had, it still seems like people are worried and the tone has changed in regards to U.S. equities maintaining this growth in the future ahead. When you add it all up and the way the markets have been behaving, it is my belief that there is major support here for silver and money will flow into the metals markets. While silver is still under-performing gold, it may be where people go for value.

Silver Dec ’18 Daily Chart

Silver Dec '18 Daily Chart

Tom Beller