Silver: Here are your critical prices for the metal going into this week. With a Friday close under the trade range boundary near $20.50 for both these data sets, the price magnets are now down at $20 the figure going forward. What happens next will depend on the Geopolitical premium in Gold. I see via twitter that the Ukrainian forces are closing in on Donetsk having encircled her a few days ago, and its only a matter of time before these separatists are taken out IMO. Lugansk, being closer to the Russian Border will be more problematic, but I cant see Putin wanting to loose any more face and is likely to cut them off or suffer more financial isolation. Israeli forces in Gaza have been withdrawing and regrouping over the weekend so that war also seems to be fading as a Geopolitical hot spot. More interestingly I do not see the Arab League taking any anti Israel stance so it doesnt seem like Hamas has many friends, particularly when they continually either break or walk away from cease fire arrangements when they are mostly decapitated. As for Silver, I see the lower end of the trading range that is centred on $19.80 as achievable before the price Route is reversed. For this to be achieved we will need to see Gold under the $1,262 trade range boundary, $30 lower from current levels. A cooling of war tensions ultimately in Gold may be worth up to $70 downside from current levels at $1,293 IMO.
Posted on: Mon, 04 Aug 2014 03:01:26 +0000
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