Silver price rises to 8 years high; retailers work at short notice

Editor’s note: With so much market volatility, stay up to date with the daily news! Get caught up soon with our quick summary of today’s must-read news and expert opinions. Sign in here!

(Kitco News) – Silver futures prices traded sharply higher, reaching an eight-year high of $ 30.35 in early US trading. Retailers, encouraged by social media chat rooms, are working on a brief push in the market, which means they are trying to capitulate traders in the silver market. Gold follows silver higher and also sees some safe haven amid a recent shaky US stock market. Gold futures in April were last $ 17.30 at $ 1,867.40 and March Comex silver last $ 2.896 at $ 29.81 per ounce.

The feature on the market to start the trading week and the month of February is that silver prices have risen to a high of eight years above $ 30 per ounce today as retailers seek a ‘short push’ in the market. Social media ignited over the weekend, especially on Reddit, as the growing retail group wanted to kill another market – this time silver – which they said was dominated and manipulated by the ‘big boys’ on Wall Street. This follows the GameStop saga that took place last week, in which the smaller retailers squeezed the large hedge funds that shortened the troubled business. The silver is a much larger animal to adopt than a smaller individual stock. Still, the “Redditors” have scared a lot of people on Wall Street, especially the big hedge funds that like short stocks, according to them now or in the future. While the gain in silver is certainly strong, it is not the epic progress that social media sites predicted over the weekend. However, the trading week is still young and a lot can still happen. What was important was that the gold and silver markets had a bit of a headwind behind them before the Redditor trade started. Many veteran market observers have suggested that “inflation trading” would boost the raw commodity markets, which include the metals, with large central banks and governments pumping so much liquidity into financial systems around the major global economies created by the Covid-19 pandemic is paralyzed, starting too late.

Global stock markets were mostly firmer overnight. US stock indices point to higher openings when the day starts in New York, after trading lower on Sunday night. Decline in the rate of Covid-19 infections and deaths in the US are positive elements for the trader and investor sentiment.

In other news overnight, the Eurozone Index for Production Purchasing Managers (PMI) rose to 54.8 in January from 55.2 in December. A reading above 50.0 indicates growth in the sector.

The most important “outside markets” today show the US dollar index higher. Meanwhile, the price of futures crude oil for Nymex is higher, trading at about $ 52.65 a barrel. The yield on the standard 10-year U.S. Treasury note is 1,076%.

U.S. economic data to be released Monday include the U.S. PMI for manufacturing, the ISM report on business manufacturing, the global PMI for manufacturing and construction spending.

Technically, the gold futures contracts in February have the overall short-term technical advantage amid the recent bad trade. The Bulls’ next upward price target is to end in February futures with a solid resistance at $ 1,900.00. Bears’ next short-term downward price target pushes futures prices below solid technical support at the January low of $ 1,804.70. The first resistance is seen at last week’s high of $ 1,788.90 and then at $ 1,900.00. The first support is seen at the lowest price of $ 1,851.70 and then at the low of $ 1,832.40. Wyckoff’s Market Rating: 5.5

Silver futures bulls in March have the overall technical advantage in the short term with the big gains over the past three days. The next upward price target of Silver Bulls is the closing price above a solid technical resistance at $ 35.00 per ounce. The next downward price target for the Bears is to close prices below a solid support at $ 27.77. The first resistance is seen at $ 30.00 and then at the overnight high of $ 30.35. The next support is seen at $ 29.00 and then at the overnight low of $ 28,155. Wyckoff’s Market Rating: 9.5.