Time to mull a silver price recovery
Chart used with permission from Bloomberg Finance LP, as of 15 May 2019.
Silver prices have gone under the cosh, shifting under the Ichimoku cloud in late March to produce a low of 14.55 earlier this month. As a cursory guide, the gold/silver ratio is at its highest since 2011; suggesting that silver has continued to underperform. Nonetheless, this ratio is probably nearing a turning point. Silver’s recent 10.2% decline in prices (from February’s 16.21) was met with investors’ resilience as exchange-traded fund (ETF) holdings see accumulation from January’s low point.
Together with a fresh round of US-China trade spat and signs provided by commercial silver futures holdings, silver is starting to turn higher, rather than extending a larger dip toward the 14.34-14.25 strong support zone.
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