Silver: Short term Bullish, Longer term less bearish than Gold
13 May 2022 close: Not having made any changes to our portfolio, the geo political and world monetary pressures, which are very serious, has put our metals position on a firm hold. What we see today is no surprise either and we have seen it before. Both Silver ($20 chart support) and Gold (chart support at $1700) are still holding their respective multi year chart triangle or flag support and both Silver and Gold are short term low risk weight thus finding fairly strong support around current lower levels. Platinum in the meantime seems to have shown most of its return to weakness and still looks very promising longer term. Looking at the silver technical position the most likely and preferred scenario is for Monthly time interval to develop bullish divergence. That is not unlikely with Daily risk very low and weekly risk nearing a possible pivot towards a more bullish type correction or fresh advance. Hence no worry and no change.
01 April 2022 close: Since the Russian invasion of Ukraine Silver has been flirting with chart resistance currently around 24.85. It broke end of February of course but fell back again to continue range trading around this downsloping resistance which connects the January and April 2021 highs. Our metals position and Silver are on a patient hold. We favor the picture of the quarterly chart to push into higher risk over the coming quarters. 3 daily closings above 28.85 should finally push silver towards our long intermediate target of 37.30 which is the highest correction following the initial 50% correction in 2011. Strong Hold.
Silver/USD Risk Weight Position relative to Quarterly, Monthly, Weekly and Daily risk weight data(Previous update in brackets)
|Trend||↓ (↑)||↓ (↓)||↑ (↑)|
|% Risk Weight||24 (33)||18 (64)||8 (39)|
|Total PM Portfolio allocation 50% (40%) breakdown:||Au:12%||Ag:14%||Pt:14%|