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Christopher Lewis
Silver

Silver markets have been noticeably quiet during the trading session on Friday, but the Thursday session ended up forming a massive hammer on the $18 level. This is a level that has offered both support and resistance recently, and of course is a large, round, psychologically significant figure. If we can break above the highs of the Thursday session it is likely that the market will continue to look towards the $18.75 level, followed by the $19 level. Beyond that, then we make a serious push towards the $20 level which has been crucial more than once going back through history.

SILVER Video 06.07.20

The last time we broke the $20 level significantly, it was during the Great Financial Crisis. In fact, we broke above it so drastically that the silver market seriously threatened the $50 level. I do not know that I am calling for that at this point, but I do think that we will eventually break above the $20 an ounce level. After all, this is a market that is being propped up by central banks around the world and it is probably only a matter of time before traders start to take advantage of the fact that so many people will be running into hard assets and away from fiat currency.

This is especially true as the Federal Reserve liquefy as the markets and eases quantitative measures, so at this point I look at silver is a market that should be bought on dips, even if we do break down below the $18 level. I do not have a selling scenario.

For a look at all of today’s economic events, check out our economic calendar.

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