The price of silver rises to 8 years; retail traders work in short squeeze

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(Kitco News) – Silver futures prices are currently trading sharply higher and reached an eight-year high of $ 30.35 at the beginning of Monday’s US session. Retail traders, encouraged by social media chat rooms, are working in a tightening market, which means trying to force traders to sell on the silver market to capitulate. Gold follows silver bullishly and is also seeing some safe harbor demand amid a recently unstable American stock market. April gold futures rose $ 17.30 to $ 1,867.40 and March Comex silver rose $ 2,896 to $ 29.81 an ounce.

The feature in the market to start the trading week and February is that silver prices have skyrocketed to an eight-year high above $ 30 an ounce today, as retail traders are looking for a “tightening to short “in the market. Social media lit up over the weekend, especially on Reddit, as the growing group of retail traders sought to destroy another market – this time for silver – which they claim was dominated and manipulated by Wall’s “big boys”. Street. This follows the GameStop saga that took place last week, in which small retail traders put pressure on the large hedge funds that had short sold the troubled businesses. Silver is a much bigger beast to contend with than a smaller individual stock. Still, redditors scared many on Wall Street, especially the big hedge funds that like to sell stocks that they think will be in trouble now or in the future. While the gains in silver are certainly strong, they are not the epic advances in the price of the full moon that some social media sites predicted over the weekend. However, the trading week is still young and much can still happen. It is important to note that the gold and silver markets had a little wind in their favor before the Redditor trade went into action. Many veteran market watchers were already calculating that the “inflation trade” would boost commodity markets, including metals, with major central banks and governments injecting liquidity into financial systems to boost major world economies that were affected by the pandemic. from Covid-19.

Global stock markets were firmer overnight. US stock indexes point to higher openings when the New York day session begins, after opening lower in Sunday night trading. Declines in the rate of infections and deaths from Covid-19 in the US are positive elements for both trader and investor sentiment.

In other evening news, the January zone’s manufacturing purchasing managers’ index (PMI) stood at 54.8 against 55.2 in December. A reading above 50.0 suggests growth in the sector.

The main “foreign markets” today see the highest US dollar index. Meanwhile, Nymex crude futures prices are higher and are trading around $ 52.65 a barrel. The yield on the 10-year United States Treasury reference note is 1.076%.

US economic data due to be released on Monday includes the US manufacturing PMI, the ISM report on commercial manufacturing, the global manufacturing PMI and construction spending.

Technically, the gold bulls of February have a slight general short-term technical advantage amid recent hectic trades. The Bulls’ next bullish price target is to produce a close on the February futures above the solid resistance at $ 1,900.00. The bears’ next short-term low price objective is to push future prices below solid technical support at the January low of $ 1,804.70. The first resistance is seen at last week’s high of $ 1,878.90 and then at $ 1,900.00. The first support is seen at the night low of $ 1,851.70 and then last week’s low of $ 1,832.40. Wyckoff market rating: 5.5

Bulls in the silver futures market in March have a strong general short-term technical advantage, with the big gains of the past three days. The next bullish price target for silver bulls is to close prices above solid technical resistance at $ 35.00 an ounce. The bears’ next downside price target is closing prices below solid support at $ 27.77. The first resistance is seen at $ 30.00 and then at the $ 30.35 night high. The next support is seen at $ 29.00 and then at the $ 28.155 night low. Wyckoff’s market rating: 9.5.