Click to Enlarge You’d think silver and gold would trade in tandem. And most of the time, you’d be wrong.
While gold has had it rough of late, at least gold had a support level nearby to push off of. When silver broke under 61.8% Fibonacci line at $25.27 per ounce in April, it was like the floodgates opened.
To give credit where it’s due, there’s a glimmer of hope of support at $17.93. That’s been a key resistance level, too, making it that much more important as a floor now. As was the case with gold, it might even be enough to spark a quick bounce, maybe as high as $20.
The long-term trendline here, however, suggests $20 is about as high as silver could travel — for the time being — before the weight of that gain would start to bear down on prices again.
As of this writing, James Brumley did not hold a position in any of the aforementioned commodities.