RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Metals

Silver Up as Rest of Metal Market Suffers

Posted 09/28/2018 9:12AM CT | Joshua Graves

Metals are suffering due to a stronger U.S. Dollar index, posting an interest rate rise of .25 after the FOMC meeting that took place on Wednesday afternoon. With the economy acting strong recently and having such a great year, safe-haven markets have suffered.  We have a short term negative bias from here and have our technical levels listed below:

Silver had been flat on the week, however is up .22 cents this morning on a lot of talk that silver is cheap in relation to Gold.  The gold/silver ratio, which is simply gold divided by silver is sitting at 82 as of Friday morning. There have only been 7 times in history where the gold/silver ratio has exceeded 80.  Silver is near a trend-line breakout and could have a short-term pop, like this morning. However, we still think we need more news in the following month ahead from FOMC and we will keep a close eye on the dollar and any news of tariffs between the U.S. and China.

Gold-Silver Ratio Chart Dec ’18 Daily Chart

Gold Silver Ratio December '18 Daily Chart

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Joshua Graves

Senior Market Strategist
Josh began his career in May of 2013 after graduating from Purdue University, West Lafayette. He received a degree in Agricultural Economics, with a Certificate in Entrepreneurship. He started at Paragon Investments in Kansas, the heart of wheat country. While working there he developed long term relationships with corn, soybean, and wheat producers, speaking with them on a weekly basis. His goal was to market their physical production more effectively through tracking basis, as well as hedge their exposure in the grain and cattle markets through a variety of futures and option strategies. He then moved to Florida to work for PFL Petroleum, a physical biofuels brokerage, and gained significant exposure to OTC and physical energy markets. Trading has been a passion from day one of his career. In his free time he stays active in downtown Chicago, attends sporting events, and holds an FAA Private Pilot’s License and flies Cirrus and Cessna aircraft regularly.
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