Silver Weekly Price Forecast – Silver Markets Crater

Silver markets initially rally during the week, but then got absolutely slaughtered as risk appetite around the world continues to crater due to the coronavirus. The silver markets selling off on a sign of lowered industrial demand, and quite frankly probably some forced liquidation as traders need to raise capital to cover margin in other markets. There have been horrific losses in other assets so sometimes traders need to shift funds around, and this is especially true in situations like we have right now.

SILVER Video 02.03.20

To the downside, the $16.00 level underneath offers a lot of support, so I think that might be where the market goes looking to find buyers. The candlestick closing as low as it has during the week shows just how much negativity there is, as the bloodshed on the world’s exchanges hasn’t ended. I fully anticipate that we will continue to go lower, and any rally at this point will probably be sold into on signs of exhaustion.

However, if central banks around the world start cutting rates, and I suspect that could happen over the weekend, that might have the opposite effect in this market in sending precious metals higher. It is a bit of a guess at this point, but that certainly would be the type of wildcard that could change things. This weekend is going to be crucial as to where we go next, and the world’s central banks are most certainly on notice at this point. Ultimately, there are probably more losses but eventually silver will offer a bit of value, which again I suspect is closer to the $16.00 level underneath. At that point in time it might be a longer-term “buy-and-hold” scenario.

Silver Price Forecast – Silver Markets Break Down Drastically

Silver markets broke down significantly during the trading session on Friday, breaking through the 200 day EMA which of course is a very negative sign. Silver is going to be a bit interesting considering that the market participants are likely to go looking at the $16.50 level. That’s an area that I think continues to attract a lot of attention as it was previous support but quite frankly it’s probably only a matter of time before we break down a bit. Precious metals of course are a bit of a safe haven when it comes to markets, but silver has an industrial component as well, and that of course is part of what’s getting punished.

SILVER Video 02.03.20

Furthermore, the markets may have witnessed a bit of forced liquidation of silver as a lot of traders would have been in profit. By taking profits here they can pay for losses elsewhere. That’s simply the market looking for liquidity where it can find it. At this point, silver is more than likely going to find a bottom, but I think we may have a little bit more pain to go. Over the weekend we may get some central bank interest-rate cuts, so that could help silver, but there are far too many question marks out there right now to simply put money to work. This is a very dangerous market and essentially a “50-50 proposition” that we are dealing with. At that point, it’s no longer trading but it then becomes gambling. That of course is not very advisable. Expect extreme volatility on Monday regardless of what happens over the weekend.

Silver Daily Forecast – Silver Slides to 10-Week Low

Silver has lost ground for a fourth straight day. Currently, silver is trading at $17.12, down $0.64 or 3.65% the day.

Silver Approaching $17

It has been a rough week for silver. The metal is down 7.5% and is on track to post its worst week since October 2016. Silver is struggling to stay above the symbolic 17.00 level, which has held since mid-December.

As a precious metal, silver can be considered a safe-haven asset. At the same time, it also has use as an industrial component, and this aspect has sent silver prices sharply lower. For example, silver is found in photovoltaic (PV), which is a key component in the manufacture of solar panels. China boasts the largest PV silver market in the world, and the coronavirus resulted in many PV factories having to close. South Korea, another industrial hub for silver, has been hit hard by the coronavirus, as the country’s economic activity has been sapped.

Will Fed Trim Rates in Response to Corona?

Only a few weeks, ago, Federal Reserve policymakers were confidently indicating to the markets that they did not anticipate lowering rates in 2020. However, the devastating economic consequences of the coronavirus may cause the Fed to reconsider this stance.

On Thursday, Chicago Fed President Charles Evans said that the Federal Reserve was paying “close attention” to the outbreak and said that “policymakers must commit to provide extraordinary accommodation in order to meet their mandate.” If the coronavirus spreads in the U.S., the Fed may be forced to cut interest rates.

 

Silver Technical Analysis

As silver falls, support levels continues to break. The 200-day EMA is situated at 17.10 and is located at the candlesticks. This is immediately followed by the round number of 17.00. Below, we find support at 16.30, which is protecting the 16.00 level. Above, we have resistance at 17.50, with the 50-EMA at 17.81. This is followed by the key line of 18.00.

 

Silver Price Forecast – Silver Markets Stabilize

Silver markets did very little during the trading session, which is quite interesting considering the stock markets around the world are collapsing. This suggests that perhaps people are starting to look at the industrial component of silver just as much as it is the precious metal component. At this point, I believe that silver does favor the upside longer-term, but obviously we have a lot of issues to work through right now. The 50 day EMA certainly looks as if it is offering a little bit of support, as it typically will. Underneath, the $17.50 level underneath should offer quite a bit of support.

SILVER Video 28.02.20

All things being equal this is a market that has plenty of support underneath, not the least of which will be found at the $17.00 level as it is a large, round, psychologically significant figure, and of course the scene of the 200 day EMA. This means that the market is probably going to continue to respect that area but if we did break down below the $17.00 level, then it’s likely that the market goes looking towards the $16.00 level next. That would be the beginning of a major “risk on” type of move in my estimation, something that doesn’t seem very likely in this environment. That being said, the most important thing about the market is its price, so you would have to listen to it. I think we are much more likely to see a bounce from here than anything else, reaching towards the $19.00 level.

Silver Daily Forecast – Silver Slide Resumes, is $17.00 Next?

Silver has lost ground on Thursday. Currently, silver is trading at $17.83, down $0.15 or 0.92% the day. 

Silver Falls on Demand Fears

Silver continues to show sharp swings. After gaining 4.3% last week, silver has slumped this week, surrendering most of these gains. The metal has benefited from its status as a safe-haven asset, but it is also used as an industrial metal. This means that the economic chaos caused by the coronavirus has fueled concerns that weaker growth will reduce the demand for silver. For example, one industrial use of silver is in photovoltaic (PV), which is a key component in the manufacture of solar panels. China boasts the largest PV silver market in the world, and the coronavirus resulted in many PV factories having to close. The virus has also spread to South Korea, another industrial hub for silver.

Meanwhile, gold prices continue to move higher, as the safe-haven asset has attracted investors who are becoming increasingly alarmed as the coronavirus has now spread to Europe and the first confirmed case has been reported in the United States. Earlier in the week, gold touched $1689, its highest level since January 2013. It appears that the metal is poised to break above the lofty $1700 level.

 

Silver Technical Analysis

Silver continues to lose ground this week. The key line of 18.00 has switched to a resistance role, but it is a weak line. Above, we have resistance at 18.60, followed by 19.20.

On the downside, the 50-day EMA is situated at 17.81 and is touching the candlesticks. The next support line is at 17.50. The 200-EMA is at 17.10, followed immediately by the round number of 17.00.

Gold Daily News: Thursday, February 27

The daily trading range reached over 30 dollars and it shows how high short-term volatility is. Investors were buying the safe-haven asset amid corona virus outbreak, economic slowdown fears recently. But gold has retraced a big chunk of that rally after bouncing off $1,700 mark.

Gold is gaining 0.7% this morning, as corona virus fears continue to dominate financial markets. What about the other precious metals? Silver lost 1.52% on Wednesday, as it got back to its Tuesday’s daily low. And the price fell below $18 mark. Silver is currently 0.9% higher. Platinum lost 1.88% on Tuesday, and right now it is trading 0.2% higher.

The metal bounced off $1,000 mark and it is getting closer to $900. Palladium was the only gainer again on Wednesday, as it advanced by 0.72%. However, it is retracing some of the short-term uptrend today, as it trades 1.2% lower.

The financial markets went risk-off since last Friday, as corona virus fears came back again. The economic data releases seem less important than the mentioned virus scare recently. Yesterday’s New Home Sales number was better than expected but it didn’t improve investors’ sentiment that much. Today we will have the Durable Goods Orders along with Preliminary GDP number release at 8:30 a.m. Then at 10:00 the Pending Home Sales data will be released. Take a look at our Monday’s Market News Report to find out more!

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Silver Price Forecast – Silver Markets Treading Water

Silver market participants continue to be a bit stagnant during the trading session on Wednesday after the initial gapped lower. That being the case, the market looks likely to see a lot of noise in this area as we are simply sitting at the 50 day EMA. Granted, the gap lower was negative but at this point it does look like we are trying to form some type of stand. The market did fill the gap, and now the question is where we go next? It’s pretty simple for me though, if we can break above the top of the candlestick for the trading session on Wednesday, then I believe silver rally significantly and towards the $19.00 level. That being said, I think it’s only a matter of time before we get that, but if we do break down from here then I think the next major support level is somewhere around $17.50 below which has turned the market to the upside the last time we hit it.

SILVER Video 27.02.20

Underneath that, then we have the 200 day EMA which is currently trading at the $17.09 level, which keeps the entire idea of an uptrend intact. One of the main things that is working against the silver market right now is the strength of the US dollar, but I think at this point it’s only a matter of time before we get more of a run towards precious metals as they are a huge safety commodity for most traders currently. The problem with silver though is the fact that it has a bit of an industrial component to it as well, so that may make it lag a bit it comes to its correlation gold.

Silver Sliding on Global Growth Fears

Silver is slightly lower on Wednesday, after plunging over 3.3% on Tuesday. Currently, silver is trading at $17.90, down $0.10 or 0.56% the day. 

Silver Falls as Industrial Use Declines

After a strong run in which silver gained over 6 percent, the metal has reversed directions and coughed up most of those gains, falling close to 4 percent. Silver benefited from its position as a safe-haven asset, but the metal is also used as an industrial metal. One key industrial use is in photovoltaic (PV, which is a key component in the manufacture of solar panels. and China boasts the largest PV silver market in the world, and the coronavirus resulted in many PV factories having to close. The virus has also spread to South Korea, another industrial hub for silver.

Coronavirus Reaches Western Europe

It has been a dreadful week for crude, which has slumped 7.1 percent. Investor risk apprehension continues to rise as the coronavirus outbreak has spread to Western Europe. Italy has reported 11 fatalities, while France confirmed its second victim on Wednesday. Spain, Austria and Switzerland have also reported coronavirus cases. The European Union had considered imposing border controls but has decided that such a severe move would do little to contain the virus.

Silver Technical Analysis

Silver continues to lose ground this week. The pair tested the symbolic line of 18.00 on Tuesday and has dropped to a daily low of 17.79 in the Wednesday session. Below, the 50-day EMA is situated at 17.81 and is touching the candlesticks. The next support line is at 17.50. The 200-EMA is at 17.11, followed immediately by the round number of 17.00.

On the upside, 18.00 is an immediate resistance line. Above, we have resistance at 18.60, followed by 19.20.

Gold Daily News: Wednesday, February 26

It clearly shows how high short-term volatility is. Investors were buying the safe-haven asset amid corona virus outbreak, economic slowdown fears recently. But gold is retracing a big chunk of that rally after bouncing off $1,700 mark.

Gold is gaining 0.2% this morning, as it fluctuates after yesterday’s decline. What about the other precious metals? Silver lost 3.63% on Tuesday, as it retraced most of the recent advances. The price fell below $18 mark, before closing above it. Silver is currently 0.5% lower. Platinum lost 4.30% on Tuesday, and right now it is trading 0.7% lower. The metal bounced off $1,000 mark and now it gets closer to $900. Palladium was the only gainer yesterday, as it rallied 5.02%. The metal extends the short-term uptrend today, as it is gaining additional 0.8%.

The financial markets went risk-off since Friday, as corona virus fears came back again. Yesterday’s CB Consumer Confidence release has been slightly worse than expected and it added fuel to a fire. The stock market has sold off again. But the economic data releases seem less important than the mentioned virus scare recently. Nevertheless, today we will have the usually important New Home Sales number release at 10:00 a.m. Take a look at our Monday’s Market News Report to find out more!

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Silver Price Forecast – Silver Diverges From Gold

Silver markets fell hard during the trading session on Tuesday, breaking back down below the $18.50 level. By doing so, it looks as if the market is going to try to find some type of normalcy, perhaps closer to the $18 handle. Silver is an industrial metal as well as a precious metal, so keep that in mind. It is because of this that gold rallied while silver struggled a bit from the lows. This doesn’t mean that we can’t rally from here, and quite frankly I think we will eventually. We may have to stabilize a little bit in the meantime though, perhaps sending this market sideways more than anything else. If the market does dip though, signs of support or of bounce should be jumped on as a buying opportunity.

SILVER Video 26.02.20

You can make a bit of an argument for a double top so far, but I don’t think this will last very long. Given enough time it’s likely that the markets will continue to go higher as we were about the coronavirus and perhaps even more importantly: central bank loose monetary policy which will drive precious metals higher over the longer term. I don’t have any interest in trying to short this market, I believe that it is far too bullish in general right now to short, and quite frankly there’s no sign of global fears around the world being combed. Even if the coronavirus situation in China does get better, the reality is that the virus has already escaped that country. With that, there should be plenty of buyers.

Silver Hits Wall, Pulls Back Towards $18 Level

Silver has reversed directions on Tuesday and posted slight losses. Currently, silver is trading at $18.34, down $0.28 or 1.56% the day. 

Silver Rally Fizzles Out

Silver has been on an excellent run, climbing 6 percent since February 12. However, the rally has stopped on Tuesday, as silver prices are down 1.5 percent. Silver appears to have been overbought, as investors were only too happy to get their hands on precious metals, such as gold and silver. These safe-haven assets have benefited from growing alarm over the coronavirus, which has sapped risk appetite. This trend was clearly apparent on Monday. Silver touched a daily high of 18.90, its highest level since September 2, while gold prices touched a daily high of 1689.38, its highest level since 2013. Despite the pullback in silver on Tuesday, the trend for silver remains upwards, and I expect a rebound sometime during the week.

Italy Reports Coronavirus Deaths

Investors remain jittery over the coronavirus, which now has an official name – COVID-2019. The virus has now reached western Europe, with Italy confirming two fatalities from the outbreak. This will likely mean more confirmed cases in western Europe since they are no border controls within the European Union. With no signs that the virus will be contained anytime soon, we could see the silver and gold rallies continue this week.

Silver Technical Analysis

After an impressive rally, silver has retraced and is again putting pressure on the symbolic 18.00 level. Below, the 50-day EMA is currently situated at 17.84, followed by support at 17.50. Next is the 200-EMA, at 17.11.

On the upside, 18.60 is an immediate resistance line, followed by 19.20. Above, the lofty level of 20.00 has held in resistance since September 2016.

Gold Daily News: Tuesday, February 25

The price of gold is the highest since early 2013. Investors keep buying the safe-haven asset amid corona virus outbreak, economic slowdown fears. Today gold is retracing some of that rally following bouncing off $1,700 mark.

Gold is retracing some of its recent rally this morning, as it is declining by 0.5%. What about the other precious metals? Silver gained 1.87% on Monday, as it got back to the early January local high. It was just below $19. This morning it is 1.3% lower. Platinum lost 0.19% on Monday, and it is 0.7% lower right now. The metal bounced back off $1,000 mark again. Palladium accelerated the uptrend recently and on Thursday and Friday it went sideways. Yesterday it lost 3.23%. Palladium price is 1.1% higher today.

The financial markets went risk-off since Friday, as corona virus fears came back again. Investors will now wait for today’s CB Consumer Confidence number release. But will the economic data be more important than the mentioned virus scare in the coming days? There will be series of news releases this week. Take a look at our Monday’s Market News Report to find out more!

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Silver Price Forecast – Silver Markets Overbought

Silver markets gapped higher to kick off the trading session on Monday, and then reached much higher during the Asian and European session as fears of coronavirus spreading into a worldwide pandemic have caused a lot of people fearing that the market will be able to expand, and as a result economic growth is all but dead. Ultimately, the silver market is being expanded by the idea of central banks around the world being forced into looser monetary policy than they already are, so therefore it’s likely that the precious metals markets will continue to attract a certain amount of attention. However, the Silver market has broken above the top of the Bollinger Band indicator, showing that we are well above two standard deviations of the norm. That normally means that we are about to see a pullback.

SILVER Video 25.02.20

Don’t get me wrong, this is not a sign to start selling Silver rather it is a sign to take profit if you are already involved. It’s very likely that the market will find plenty of support near the $18.00 level, assuming we even drop that far. Ultimately, I do like buying pullbacks, but I also have to admit that a break above the $90.00 level would be extraordinarily bullish, sending this market to go looking towards the $20.00 level. I think we get there eventually, but what we are looking at here is an opportunity to pick up value, not necessarily buying at expensive prices like we have right now. I’m bullish, but I also need to find a good entry price below.

Silver Daily Forecast – Silver Gains Ground, Closing in on $19.00

Silver has posted slight gains in the Monday session. Currently, silver is trading at $18.76, up $0.28 or 1.56% the day. 

Corona Jitters Boost Silver, Gold

Silver enjoyed an excellent week, gaining 4.2 percent. This marked silver’s strongest week since the final week in August, when silver jumped 5.3 percent.

The coronavirus outbreak continues to spread, raising fears that the virus will reach even more countries. Earlier on Monday, Italy reported 200 confirmed cases, the largest number of cases outside of Asia. Italy’s health officials have imposed severe restrictions, which include limiting transport and the quarantine of individuals in affected areas. With the virus reaching Italy, there is concern that the outbreak could quickly spread throughout western Europe, as the Schengen Area, which covers 26 countries, allows for borderless travel. The European Union has said that it will not impose travel bans, but that could change if other European countries report coronavirus cases.

World Health Organization Director-General Tedros Adhanom Ghebreyesus weighed in on the crisis on Saturday, noting that the increase in cases in Italy, South Korea and Iran “is also a matter of concern and how the virus is now spreading to other parts of the world.”

Investors have reacted by snapping up precious metals, which act as safe-haven assets. Earlier on Monday, silver touched a daily high of 18.90, its highest level since September 2. Gold prices touched a daily high of 1689.38, its highest level since 2013. With no signs of the virus will be contained anytime soon, we could see the silver and gold rallies continue this week.

 

Silver Technical Analysis

As silver continues to rally, the line of 19.00 finds itself under strong pressure. This line could be tested as early as Tuesday. Above, the lofty level of 20.00 has held in resistance since September 2016.

On the downside, 18.60 is an immediate support line. Below, there is support at the symbolic 18.00 level. Next, the 50-day EMA is currently situated at 17.81, followed by support at 17.50.

Safe Haven and Tight Supply Commodities in Demand

In demand were the safe-haven metals of gold and silver as well as those with a tightening supply outlook such as cocoa, sugar and wheat. Funds continued to cut crude oil longs as the rally extended into a second week. A development that highlights the worries related to the demand shock caused by the virus outbreak in China.

Saxo Bank publishes two weekly Commitment of Traders reports (COT) covering leveraged fund positions in commodities, bonds and stock index futures. For IMM currency futures and the VIX, we use the broader measure called non-commercial.

Broad price gains in the week to February 18 saw hedge funds turn net-buyers for the first time in four weeks. The sentiment was temporarily supported by actions from the People’s bank of China and the market mistakenly adopting the narrative of the virus outbreak primarily being a Q1 event. The underlying uncertainty remained and that was strengthened towards the end of last week on renewed fears as the virus intensified beyond China’s borders.

The canary in the coal mine was gold and silver which despite dollar strength and the attempted rally among pro-cyclical commodities saw continued strong buying. In our Commodity Weekly from Friday titled “Gold is in the midst of a perfect storm” we highlighted the reasons why precious metals continue to attract buyers.

The gold net-long jumped by 24%, the equivalent of nearly $9 billion nominal, to 284k lots while funds increased the silver long by 22% to 68k lots, a 30-month high. Gold’s accelerated rally to a seven-year high in the days following the reporting period is likely to have taken the net-long above the previous record of 292k lots. With total holdings in ETF’s backed by bullion also hitting record highs, the combined ETF and fund long reached a record of 112 million ounces last Tuesday.

Funds cut bullish WTI crude oil bets by 27k lots while keeping the Brent long close to unchanged. The latter potentially in response to supply risks from Libya, Russia’s Rosneft and potential OPEC+ cuts.. The Brent long at 283k lots remains some 80k lots above its October low.

The WTI crude oil long meanwhile dropped to 95k lots, just 9k above the October low. It’s long/short ratio has on a combination of long liquidation and fresh short selling dropped to 1.80, close to an area that has provided support on several occasions since 2015. Perhaps an early sign of support emerging.

The record natural gas short was cut by 13% in response to cooler U.S. weather temporarily off-setting the continued price weakness caused by the Asian demand shock and a mild winter across the Northern Hemisphere.

Agriculture commodities were mixed with those facing tightening supply receiving additional buying interest. The net-long in CBOT wheat jumped 41% to 65k lots, an 18-month high, the sugar long reached 166k lots, a three-year high. Despite having run of steam the cocoa long nevertheless reached a fresh six-year high while continued coffee selling drove the net-short to a 15-week high.

What is the Commitments of Traders report?

The Commitments of Traders (COT) report is issued by the US Commodity Futures Trading Commission (CFTC) every Friday at 15:30 EST with data from the week ending the previous Tuesday.
The report breaks down the open interest across major futures markets from bonds, stock index, currencies and commodities. The ICE Futures Europe Exchange issues a similar report, also on Fridays, covering Brent crude oil and gas oil.

In commodities, the open interest is broken into the following categories: Producer/Merchant/Processor/User; Swap Dealers; Managed Money and other.

In financials, the categories are Dealer/Intermediary; Asset Manager/Institutional; Managed Money and others.

Our focus is primarily on the behavior of Managed Money traders such as commodity trading advisors (CTA), commodity pool operators (CPO), and unregistered funds.

They are likely to have tight stops and no underlying exposure that is being hedged. This makes them most reactive to changes in fundamental or technical price developments. It provides views about major trends but also helps to decipher when a reversal is looming.

Ole Hansen, Head of Commodity Strategy at Saxo Bank.

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This article is provided by Saxo Capital Markets (Australia) Pty. Ltd, part of Saxo Bank Group through RSS feeds on FX Empire

Gold Daily News: Monday, February 24

The price of gold is the highest since early 2013. Investors keep buying the safe-haven asset amid coronavirus outbreak, economic slowdown fears. Today gold is much higher again.

Gold is extending its short-term uptrend this morning following an overnight daily gap-up opening. The gold price got closer to $1,700. Right now, it is 2.0% higher. What about the other precious metals? Silver gained 1.15% on Friday, as it got closer to the early January local high. This morning it is 1.3% higher. Platinum lost 0.30% on Friday, and it is down 1.2% right now. The metal bounced back off $1,000 mark. Palladium accelerated the uptrend recently and on Thursday and Friday it went sideways. On Friday it gained 1.22%. Palladium price is 1.9% lower today.

The financial markets are going risk-off since Friday, as corona virus fears are coming back again. Investors will now wait for tomorrow’s CB Consumer Confidence number release. But will the economic data be more important than the mentioned virus scare in the coming days. There will be a series of news releases this week. Take a look at our Today’s Market News Report to find out more!

Check more of our free articles on our website – just drop by and have a look. We encourage you to sign up for our daily newsletter, too – it’s free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to our premium daily Gold & Silver Trading Alerts. Sign up for the free newsletter today!

Thank you.

Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care


Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Silver Weekly Price Forecast – Silver Markets Rip to The Upside

Silver markets rallied quite significantly during the week, testing the $18.50 level. Ultimately, if the market breaks above there then it can take out the $90.00 level. At this point, a pullback should offer plenty of opportunities, as the uptrend line will more than likely offer quite a bit of support as well. Keep in mind that the market is looking very much like one that is ready to try to catch up to the way gold markets broke out, and therefore it’s likely that the market will try to do the same things over here.

SILVER Video 24.02.20

At this point, if the market was to break down below the uptrend line, then it’s likely that we go looking towards the $16.50 level but given enough time that would take some type of big of major issue to occur to have a lot of “risk on” trading. I do believe that eventually the market goes looking towards the $20.00 level, which is where we had seen a lot of pressure previously.

The shape of the candlestick is very bullish, and therefore it shows just how much demand there is for silver out there. Keep in mind that the US dollar has been very strong, so the fact that silver could rally the way it has tells you just how much demand there is out there. I like buying dips, but I will be the first to admit that you are probably going to have an easier time gaining in the gold market then you will here. However, keep in mind that silver is very explosive at times, so the move could be very strong.

Silver Price Forecast – Silver Markets Rallied Into The Weekend

Silver markets rallied a bit during the trading session on Friday to pierce the $18.50 level, which of course has a certain amount of psychological importance built into it. That being said though, I think that part of what may have slowed down silver is the fact that we were going into the weekend. At this point in time, the market looks very likely to see some type of pullback, but I do think that it should offer value. Central banks around the world continue to loosen monetary policy and that is going to be good for not only silver but also gold. For what it’s worth, gold markets have rallied quite significantly, and it is quite common for one of these markets to move ahead of the other one, thereby dragging the laggard right along with it.

SILVER Video 24.02.20

To the downside, I believe that the uptrend line and the 50 day EMA both will come into play in order to support silver from a technical analysis standpoint, but quite frankly I don’t think that happens anytime soon. That being the case, I like the idea of buying dips as it offers value in silver, but if we do break above the top of the candlestick for the Friday session then it’s likely we go looking towards the $19.00 level above. Given enough time, I do believe that the market goes looking towards the $20 level. That being said, it may take some time to get there.

Gold Daily News: Friday, February 21

The gold futures contract gained 0.54% on Thursday, as it extended the recent advance even further above $1,600 mark. The price of gold has reached new medium-term high of $1,626.50. It is the highest since 2013. Investors keep buying the safe-haven asset despite rising U.S. dollar. Today gold is higher again.

Gold is extending its short-term uptrend again this morning, as it is gaining additional 0.9%. What about the other precious metals? Silver gained just 0.04% on Thursday, as it remained above the late January local high. This morning it is 0.7% higher. Platinum lost 2.54% yesterday, and today it is 0.6% higher. The metal got back below $1,000 mark. Palladium accelerated the uptrend recently and yesterday it went sideways, as it gained just 0.11%. Palladium price is 0.9% higher today.

The financial markets went risk-off yesterday despite a better-than-expected Philly Fed Manufacturing Index release. Was it just profit-taking action or some downward reversal? Falling stock prices gave additional boost to gold price advance. Today, the markets will await the important Flash Manufacturing PMI and Flash Services PMI numbers release at 9:45 a.m. We will also have the Existing Home Sales release at 10:00 a.m.

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Paul Rejczak
Stock Trading Strategist
Sunshine Profits – Effective Investments through Diligence and Care

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Disclaimer

All essays, research and information found above represent analyses and opinions of Paul Rejczak and Sunshine Profits’ associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Paul Rejczak and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Rejczak is not a Registered Securities Advisor. By reading Paul Rejczak’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 

Silver Poised for Strongest Week Since August

Silver is almost unchanged in the Friday session. Currently, silver is trading at $18.36, down $0.13 or 0.38% the day. 

Gold Rally Lifts Silver Prices

It has been an excellent week for silver, as the metal has gained an impressive 4.5% this week. This is shaping up to be silver’s strongest week since the last week in August, when silver jumped 5.3%.

The coronavirus, which shows no signs of being contained, continues to chill investor risk appetite. The outbreak has caused havoc in the Chinese economy, and this week’s warning from Apple that it would fall short of its revenue forecast due to the disruption of its Chinese production facilities. The disruption to supply-chains is also affecting other multinationals with operations in China.

Nervous investors have responded by snapping up precious metals, with gold prices gaining 3.1% this week. In Friday’s Asian session, gold touched a daily high of 1636.59, its highest level since March 2013. The gold rally has dragged silver with it, as silver prices are at their highest since January 8.

Fed Calls Coronavirus Global Risk

The Federal Reserve minutes, released earlier this week, took note of the coronavirus outbreak. Policymakers highlighted the significant risk posed by the coronavirus, stating that “the threat of the coronavirus, in addition to its human toll, had emerged as a new risk to the global growth outlook, which participants agreed warranted close watching.” Policymakers also said that the outbreak has dampened investor sentiment. This warning from the Fed underscores the threat that coronavirus poses to the global economy, which will likely put upward pressure on silver prices until the outbreak is contained.

Silver Technical Analysis

This week’s silver rally distance has seen the metal put more distance between itself and the key 18.00 level. The resistance line of 18.60 is under strong pressure and could be tested on Friday. This would be a significant development, as this line was last tested in resistance in late September.

On the downside, we find support at the 18.00 line. Below, the 50-day EMA is currently situated at 17.79, followed by support at 17.50.