Surprising action from the precious metals today, $SILVER not displaying any safe haven characteristics.
Silver has just retraced the entire move it started in December when Iran tensions started to flair and it just goes to show that all crisis are not created equal.
This will disappoint a lot of investors who use the metals for a little bit of equity risk hedging, but the focus on supply chain disruptions and has really brought to the fore the industrial aspects of $SILVER and to some extend $GOLD , which has fallen but not as dramatically and is actually pretty flat for the month now.
After all, shut factories don’t need materials and while it’s frustrating it’s what we have. The good news, in my opinion, is that the $16-$16.20 area looks like it could provide support and offer a natural zone for some consolidation.
I’m hoping it stabilise here and build a new base ahead of potential rate cuts and easing from the FED which should help the metals in a broader sense.
Thanks for your time.
