Morning Silver Market Report : Surprisingly silver outperformed the gold market again on Tuesday and is showing the same type of out performance again today. Some players suggested that improved economic attitudes in Europe and the US provided improved physical demand views toward silver, but that argument is somewhat dashed by this weeks gains in US Treasuries and by the sharp slide in the US Dollar. However, silver will probably garner some lift from news of another 2.2 million ounce inflow of investment into silver derivative holdings, which have now reached an impressive 542 million ounces. News of an active trade in a new aluminum futures contract might also have added to silvers bullish track yesterday, and it is also likely that silver is set to derive some ongoing lift from residual strength in platinum group metals prices. It is possible that the Dollar could provide more support to silver in the event that US initial jobless claims Thursday fail to alter a recent pattern of gains. In the shorter term, we maintain a bullish view toward silver, but traders should not tolerate a slide back below this weeks lows, especially if gold is showing weakness. Comex silver warehouse stocks showed little change yesterday, but it is a good bet that silver has a smaller relative net spec long positioning than gold, platinum and palladium, and for that reason alone, some fund managers might want to be long silver for a position play. Comex Silver Stocks were 174.826 million ounces up 1,018,087 ounces. Silver stocks have declined 15 of the last 20 days. Critical resistance is seen up at $19.745, and a move above that level could spark a modest wave of short-covering buying. However, the failure to hold above $19.4850 today would not be a positive development, especially if gold and/or PGM prices are leading the way lower.0
Posted on: Wed, 07 May 2014 12:48:03 +0000
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