Silver like many commodities has had a good start to 2016, rising over 14% from January’s open at $13.85 to close yesterday at $15.87. This was on the back of a commodity rally and USD weakness following the dovish tones from the FED on Wednesday. Thursdays close for Silver represented a new 2106 high and above previous resistance at $15.70.
The next leg up could be interesting, there is resistance at the psychological $16.00 and $16.05.
Silver is classified as an industrial metal and so moves in different although similar phases to the Gold price which is very much a precious metal and safe haven asset. Silver has not moved as aggressively as Gold during 2016 and we believe there could be further for the silver rally to run as the fundamentals of strong demand for bars and coins builds.
An initial T1 target of $16.10 (October 2015 high) and then to previous high (T2) of $16.25.
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Senior Currency Strategist
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