We have seen a positive week for Dec silver with a big up day on Thursday following a pullback on Wednesday. This week’s stock market gains and better than expected US economic data has provided the support needed for silver to rally. Although stocks have started today’s trading session red we have seen a rally of almost 7% this week and US non-farm payrolls came in at 638,000 vs an estimate of 600,000 with the US unemployment rate coming in at 6.9% vs an expected 7.7%. With the US dollar showing signs of continued pressure the silver market should hold this week’s move and look to continue a push to the upside. At this time it looks like Biden will become the next president, but the markets seem to be focusing more on the hopes of another stimulus package which is supportive for silver as well. To see the rally in silver continue we would need to see a continued move lower in the US dollar, a slowing of virus cases, and/or a stimulus package agreed upon. Dec silver traded up to a high of 25.975 today before pulling back some and to keep its momentum we would need to see a close above yesterday’s high of 25.54. Support comes in at 25.00 and the next resistance level is 27.50.

Silver Dec ’20 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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