With the exception of platinum, the rest of the precious metals complex traded on the futures markets showed very respectable gains. Leading the front line were silver futures, which rose 3.6% in today’s trading. This was closely followed by the electronically traded SLV fund, which outperformed futures, gaining 3.90%. The Ishares Silver trust is currently at $ 0.98 per share and has set that at $ 26.25.
As of 4:10 PM EST, the silver futures base, the most active Comex contract in March 2021 is currently set at $ 28.245, after considering today’s net gain of $ 0.98. While today’s initial opening for trading created a small gap between Friday’s close, silver prices filled the gap when they traded at a low of $ 27.33 and then recovered with substantial gains.
Gold futures prices rebounded and exhibited strongly, earning $ 30 a day. The base, the most active April contract gold, was traded and closed above $ 1800 an ounce for the first time since it broke below $ 1800 on February 16. The future for April is currently set at $ 1,807.30, which is a net gain of 1.68%, or $ 29.90. Not far behind in terms of percentage gains on the day was the electronically traded fund GLD, which gained 1.49% and is currently set at $ 169.50.
Although gold performed stellarly today, it continues to be overshadowed by its silver metal sister. Technically, we have seen silver prices rise substantially since the 50-day moving average exceeded the 100-day moving average, which occurred on 25 January.
During late January, silver was trading at about $ 25.50 an ounce. After a rapid price advance that brought silver prices to $ 29.40 and then on February 1, it suffered a major sale, taking the precious white metal to $ 26.33. What would follow would be a period of 12 trading sessions in which prices consolidated around $ 27.
In fact, silver fell to its 50-day moving average on Friday of last week, trading at an intraday low of $ 26.10, before recovering above $ 27. This was followed by today’s stellar performance , taking silver well over $ 28 per ounce.
Both gold and silver recovered today by reacting to market sentiment, assuming that there would be inflationary concerns in the future. These concerns overcame the rise in treasury yields. In the case of silver, industrial use combined with inflationary concerns were underlying factors that raised silver.
Our target remains $ 30 to $ 33 in silver. We believe that it could easily reach the upper limits of our projection once a final fiscal stimulus project is voted and approved.
All precious metals have benefited from a weaker US dollar. The dollar index lost about 3/10 of a percent today and is currently set at 90.10
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Wishing you as always, good trade and good health,
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