We have been noting silver taking up leadership from gold as the sector hinted at (and yesterday made) a breakout. Here is the daily view of this morning’s Silver/Gold futures.
The weekly chart shows the clear hold of support made by the ratio during the recent months of correction. Silver/Gold is a forward looking indicator of inflation.
The long-term SGR has led the way for the CRB index and some individual commodities that have not yet broken through big picture resistance. So far, so good.
Nominal silver (daily) has broken through short-term resistance at 26 and is working on the top side of the long-term resistance (2nd chart below) area that ultimately held it in check last summer. The implication of this chart is a new high.
This longer-term weekly chart shows the clear resistance shelf (26-27.50) from 2011-2012 that we used as a caution signal on silver’s original impulsive burst upward out of the deflationary depths of early 2020. If this is not some new year head fake and silver takes out current resistance the implication would be for a new high above the 2020 high. What’s more, this is a chart that could be set free (and pardon any hype you may perceive here) as RSI and MACD have been reset from the earlier overbought status and there is scant resistance in play.