Silver plunges despite weaker dollar.

30/11/2020

Precious metals failed to capitalize on the weak greenback (which is down to two-year lows) and were hammered recently, with silver down 15% from November highs, trading at around 22 USD today.

Additionally, copper is going vertical, and platinum/palladium is also bid strongly, which leaves silver and gold oddly unsynchronized.

Nevertheless, it looks like a bearish breakdown below September lows is imminent. That support is near 21.70 USD and could be broken today. The next target for bears would be at the psychological level of 20 USD, afterward at summer highs near 18.50 USD. 

Alternatively, if silver starts rallying, it needs to jump back above the 23 USD level to clear the immediate bearish threat. Until then, the medium and short-term trend appear bearish.

However, the long-term trend should be bullish as fundamentals are very bullish for precious metals, and therefore it is weird that precious metals are extremely underperforming other asset classes sensitive to the money supply. 
Cookie Policy: The Axiory website uses cookies and by continuing using the website you consent to this. Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Please read the full Privacy Policy.