Silver hits new lows for 2021 – Silver technical analysis
Silver had no love last week, suffering his worst week in thirteen weeks and racking up a fourth straight month of losses. After losing US $ 1.35 / t.oz between Sept. 13-18, the metal closed on Friday at US $ 22.38 / t.oz. Until last week, silver had not traded below US $ 22.50 / t.oz for all of 2021. One would have to go back on their charts to November 2020 to find the silver trading below US $ 22.50 / t.oz.
The cause of Silver’s unpopularity could be the signs that the US economy is doing well, regardless of the fears of the Delta variant. On the one hand, retail sales in the United States were a pleasant surprise last week, up 0.7% from an expected drop of 0.8%. With positive signs beaming from the US economic reports, the gravity of talks about a Fed withdrawal is escalating, and with it, a stronger dollar and less demand for metals hedging.
What we might expect from Silver to move forward
We may be in uncharted territory here. At least from a technical perspective and recent history. Silver has successfully defended the US $ 22.50 / t.oz price point on several occasions over the past twelve months. To find a closing price below that threshold, head to July 2020, when silver closed at US $ 19.40 as it has climbed for eight straight weeks, to seven-year highs. , peaking just before US $ 30.00 / t.oz.
Now that the closing spell has been broken, a new era of pricing may be on its way for silver. Going forward, don’t be surprised by a new range for silver between US $ 20.00 / t.oz and US $ 22.50 / t.oz leading to a Fed announcement of a set reduction schedule. . It is possible that the FOMC meeting, scheduled for next Thursday, followed by Fed Chairman Powell’s speech on Friday, may be the events responsible for the metal’s next significant move.
Silver, Technical Analysis