Morning Silver Market Report While the geopolitical outlook looks to remain supportive of gold directly ahead, the outlook for silver is less definitive. With another massive slide in copper prices on Tuesday and again overnight, rising Russian sanctions fears and adverse currency market action, the silver market looks to continue to battle a number of macroeconomic headwinds. So far, the gains in gold prices appear to be just significant enough to countervail negative physical commodity market demand fears in silver. However, damaging chart action in silver has continued to unfold and the threat of more significant declines in equities and copper ahead, has left the silver market in a vulnerable position. May Silver this morning remains near its recent lows and the failure to track tightly with distinctly positive moves in gold, suggests that the short term trend remains negative. In short, silver isnt driving higher off economic anxiety and the twin concerns of Ukraine and China, leave the bear camp with an edge. Comex Silver Stocks were 183.469 million ounces up 303,570 ounces. Comex Silver Stocks are now at the highest levels since 06/15/1997. Stocks have increased 11 of the last 20 days. The inability to climb up and away from the recent lows, slumping global physical commodity demand views and adverse currency market trends leaves the silver market in a downward motion on the charts. Gold will probably provide periodic support to silver, but it could take a consistent pattern of fresh new highs for the move in April Gold, just to slow the gradual erosion on the May Silver charts. Gold Fields Mineral Services generally forecasted weaker silver prices later this year, but those projections were largely based on continued investment liquidation. Since the start of 2014, investors in silver derivative instruments have somewhat rebuilt their positions but it could take a consistently positive global economic outlook for investors to continue to return to silver in force. For the time being, silver might correlate tightly with equities and copper and it might only see minimal spillover support from firmer gold prices. Pushed into the silver market, we favor the downside and a possible return to the $20.00 level.
Posted on: Wed, 12 Mar 2014 13:29:03 +0000
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