Silver has been under pressure after a strong rally and looks to be taking a breather. The precious metals market as a whole has benefited from the uncertainty due to the pandemic and the feds ‘Range of tools’ that have been in play. In the long-term, we can expect the market to possibly be even more resilient than gold due to its spec positioning and real rates on U.S. economic growth. Funds may take larger positions as the CME reduced its futures margin by nearly $1000, more than 30 million remain unemployed and this leaves a solid foundation of safe haven support which may also help fuel traders to get involved in an attempt for another leg higher. This fear-based demand should help weigh on economic optimism and in the short term silver and other precious metals will continue to have much volatility, lots of fluctuations, and be dependent on COVID cases and the feds assessment of its full range of tools.

July silver is set-up somewhat in a neutral zone which may cause price fluctuations. Silver has support at $17.50 and again at $17.75, these levels have been bought up in the past by traders. These levels will need to be held in order to see a re-test of the $17.90 and $18.00 dollar levels. A close in-between may cause further defensive posture within the metal.