Gold eases from another record high as market awaits tomorrow's tariff announcements
OUTSIDE MARKET DEVELOPMENTS: Market angst remains elevated amid worries that President Trump will announce levies that are broader than the targeted reciprocal tariffs previously threatened. Trump says Wednesday is America's "Liberation Day," but many view sweeping tariffs as a significant escalation of a developing trade war.
There is still lingering hope that U.S. trade partners will make concessions to avoid or minimize tariffs. However, headlines about planned retaliations abound.
Risk appetite has rebounded modestly as mounting growth risks lift rate cut expectations. Even though inflation risks are also rising, Fed funds futures are now pricing in just over 75 bps in easing by December.
Prospects for Fed easing and safe-haven demand for Treasuries are weighing on yields more broadly, which is capping the upside in the dollar. The dollar index is consolidating just off five-month lows set on 18-Mar at 103.20.
Manufacturing PMI for March was revised up to 50.2 from a preliminary print of 49.8, versus 52.7 in February. That leaves the indicator in expansion territory for a third straight month. Input prices rose to a 31-month high of 66.0 from 62.1 in February.
Manufacturing ISM fell to a four-month low of 49.0 in March, below expectations of 50.2, versus 50.3 in February. Prices paid surged 7.0 points to a 33-month high of 69.4 from 62.4 in February. Employment slid -2.9 points to 44.7, the lowest since September.
JOLTS Job Openings declined 194k to 7,568k in February, below expectations of 7,630k, versus an upward revised 7,762k in January ( was 7,740k).
Construction Spending rose 0.7% in February, better than the +0.2% the market was expecting, versus a revised -0.5% in January (was -0.2%).
RCM/TIPP Economic Optimism Index fell 1.4% to a six-month low of 49.1 in April, below expectations of 50.1, versus 49.8 in March. "As consumer confidence declines even a little, it's not unreasonable to wonder if the source of reduced confidence can be found in Washington, D.C," said John Tamny, the editor of RealClearMarkets.
GOLD
OVERNIGHT CHANGE THROUGH 6:00 AM CST: +$9.25 (+0.30%)
5-Day Change: +$106.85 (+3.54%)
YTD Range: $2,607.16 - $3,3,147.41
52-Week Range: $2,248.01 - $3,147.41
Weighted Alpha: +38.41
Gold reached a record high of $3,147.41 in overseas trading to begin Q2, driven by persistent haven demand. However, the yellow metal backed off from that new high on profit taking ahead of tomorrow's expected tariff announcements.
Despite today's setback, the fundamentals remain broadly supportive for gold. In fact, it's a bit of a perfect storm.
The threat of a trade war is stoking fears of a recession and prompting a rotation out of stocks to safe havens. Rate cut expectations are on the rise and weighing on the dollar, even as concerns about inflation are ratcheting higher.
The war in Gaza is back underway, while hopes for a ceasefire in Ukraine have dimmed.
An FT article notes that "investors have poured more than $19.2bn into gold-backed exchange traded funds during the first quarter." That's the biggest inflow since the pandemic.
“Uncertainty is one of the main factors that has led to a renewed interest in gold,” said Krishan Gopaul, senior analyst at the World Gold Council. If there is one thing we seem to have in spades since the beginning of the year, it's uncertainty.
If President Trump backs off from tariffs again, or U.S. trading partners make concessions, we could see a multi-session correction in gold. However, pullbacks are still likely to be viewed as buying opportunities as the aforementioned uncertainty persists.
A minor chart point mentioned is yesterday's commentary at $3,105.29 marks first support and protects the $3,100.00 level. More important supports are defined by Monday's low at $3,078.93 and Friday's low at $3,054.50. The 20-day MA now bolsters the $3,003.62/$3,000.00 zone.
Today's high at $3,147.41 was just shy of the $3,149.84 Fibonacci objective, reinforcing this level as good resistance. An eventual breach of this level would target $3,200 initially, but would lend additional credence to the scenario that suggests potential to $3,500.
Silver is trading lower for a third consecutive session as mounting trade and growth risks stoke worries about demand destruction. While the retreat in gold is seen as corrective, it does apply some additional weight to the white metal. The same can be said for copper's drop from last week's record high.
Minor chart support at $33.521 (26-Mar low) is bolstered by the 20-day moving average at $33.431 today. A breach of the latter would leave the low from 21-Mar at $32.767 vulnerable to a test. Below that, the 50-day MA comes in at $32.423.
A climb back above $34 is needed to revive confidence in the anticipated challenge of the multi-decade high at $34.853. Last week's high at $34.543 now defines a solid intervening upside barrier.
Peter A. Grant
Vice President, Senior Metals Strategist
Zaner Metals LLC
312-549-9986 Direct/Text
[email protected]
www.zanermetals.com
Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete, and/or up-to-date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Metals LLC unless otherwise expressly noted.
Gold on track for biggest quarterly gain in almost 40 years
OUTSIDE MARKET DEVELOPMENTS: With new reciprocal tariffs set to take effect this week, risk-off sentiment continues to drive investors toward safe-haven assets. The S&P 500 is poised for its first losing quarter since Q3'23 and its biggest loss since Q3'22 amid heightened growth and price risks.
“We continue to believe the risk from April 2 tariffs is greater than many market participants have previously assumed,” said Goldman Sachs in a weekend note. Reports last week that President Trump had an “extremely productive call” with Canadian PM Carney, and rumblings of EU concessions have done little to temper trade war worries.
Goldman Sachs now sees three 25-bps rate cuts this year, beginning in July. The implied Fed funds rate for year-end is 3.5925% today, with 78.25 bps in easing priced in.
The Fed will likely focus on boosting growth because of the implications for employment. The argument is that weakening growth will reduce inflationary pressures. However, there are mounting concerns about stagflation.
Optimism about a ceasefire between Russia and Ukraine and movement toward a peace deal has dimmed. President Trump has expressed displeasure with both Vladimir Putin and Volodymyr Zelensky.
"If Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I think it was Russia's fault - which it might not be... I am going to put secondary tariffs... on all oil coming out of Russia," said Trump.
Israel has ordered that most of the southern Gaza city of Rafah be evacuated. This suggests Israel is preparing new ground operations.
Market focus this week will be on Friday's jobs report. The market is expecting a payrolls increase of 120k and an uptick in the jobless rate to 4.2%.
Chicago PMI rose 2.1 points to a 16-month high of 47.6 in March, above expectations of 45.4, versus 45.5 in February. It was the third straight monthly gain.
Dallas Fed Index tumbled 8 points to an eight-month low of -16.3 in March, versus -8.3 in February. The outlook uncertainty index pushed up seven points to 36.2, its highest reading since fall 2022, according to the Dallas Fed.
GOLD
OVERNIGHT CHANGE THROUGH 6:00 AM CST: +$32.10 (+1.06%)
5-Day Change: +$110.80 (+3.68%)
YTD Range: $2,607.16 - $3,123.98
52-Week Range: $2,231.10 - $3,123.98
Weighted Alpha: +38.19
Gold extended to the upside on the last trading day of March and Q1, reaching a new all-time high of $3,124.93. The yellow metal is up 9% this month and is poised for its best quarterly performance since 1986.
The rally continues to be driven by tariff worries, elevated inflation expectations, a soft dollar, and persistent central bank demand. Today's push above $3,100 bodes well for attainment of the $3,149.84 Fibonacci objective and lends additional credence to the longer-term target at $3,500.
Morgan Stanley strategist Amy Gower sees gold topping out at $3,300/$3,400 this year as record-high prices sap all-important jewelry demand. However, Goldman Sachs suggested gold could reach $4,500 over the next 12 months in an "extreme tail scenario.”
While the WGC hasn't updated ETF data for last week, I suspect a ninth straight weekly inflow into gold ETFs will be confirmed.
The COT report for last week showed that net speculative long positions held steady at 257.9k contracts.
A minor intraday chart point at $3,105.29 marks first support and protects the $3,100.00 level. More important support is defined by today's Asian low at $3,078.93. The 20-day moving average is poised to climb above $3,000 this week.
Silver is trading lower for a second straight session, but is still nearly 9% higher for March and more than 17% for Q1. While the latest record highs in gold and a soft dollar are seen as supportive, mounting trade war concerns and global growth risks have weighed more recently.
The same worries have knocked copper off its recent record highs, providing an additional headwind for silver. Copper prices in the U.S. were up 28% YTD last week, as manufacturers loaded up on the important metal ahead of threatened tariffs. The Wall Street Journal declared, Copper Is 2025’s Hottest Commodity.
While silver scored five-month highs last week, gains stalled ahead of the key $34.853 peak from October. A breach of this level is needed to perpetuate the uptrend and shift focus to the $35.348 high from October 2012.
I suspect the trade will want to try a more serious challenge of that October peak, so downticks are considered corrective at this point. Last week's high at $34.543 is an important intervening barrier.
The COT report for last week showed net speculative long positions held steady at 62.3k contracts.
CFTC Silver speculative net positions
Minor chart support marked by Thursday's low at $33.618 has contained the downside today. This keeps Wednesday's low at $33.521 and the more important 20-day moving average at $33.342 at bay.
Peter A. Grant
Vice President, Senior Metals Strategist
Zaner Metals LLC
312-549-9986 Direct/Text
[email protected]
www.zanermetals.com
Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete, and/or up-to-date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Metals LLC unless otherwise expressly noted.
Gold sets another new record, while silver eases from 5-month highs
OUTSIDE MARKET DEVELOPMENTS: Personal income jumped 0.8% in February on expectations of +0.4%. Spending came in below expectations at +0.4%.
PCE inflation was in line with expectations at +0.3% (2.5% y/y). Core PCE inflation was slightly warmer than expected at +0.4% (2.8% y/y).
These data will not materially change the Fed policy outlook. The implied Fed funds rate for December is currently 3.6925%, reflecting expectations for 68 bps in easing by year-end, with the first 25 bps cut not fully priced in until July.
That leaves markets to focus on rising trade tensions and ongoing geopolitical risks. Risk aversion remains elevated heading into the weekend, and all the major stock indexes are under pressure.
Bloomberg reports that the EU is preparing a term sheet of concessions to avoid U.S. reciprocal tariffs that are supposed to go into effect next week. If there's a bright spot on the trade front, this is it.
Perhaps not surprisingly, the final Michigan consumer confidence reading for March was revised down to a 28-month low of 57.0 from 57.9, versus 64.7 in February. Meanwhile, one-year inflation expectations were nudged up to a 32-month high of 5.0% from a preliminary print of 4.9% and 4.3% in February.
Personal Income +0.8% in February, above expectations of +0.4%, versus a revised +0.7% in January (was +0.7%).
PCE +0.4%, below expectations of +0.6%, versus a revised -0.3% in January (was -0.2%).
PCE Chain Price Index +0.3%, in line with expectations, versus +0.3% in January; 2.5% y/y, unchanged from January. Core +0.4%, above expectations of +0.3%, versus +0.3% in January; 2.8% y/y, up from 2.7% in January.
Michigan Consumer Sentiment (final) was revised down to 57.0 from 57.9, versus 64.7 in February. Inflation expectations were revised up to 5% (1-year) and 4.1% (5-year).
GOLD
OVERNIGHT CHANGE THROUGH 6:00 AM CST: +$17.63 (+0.58%)
5-Day Change: +$50.66 (+1.68%)
YTD Range: $2,607.16 - $3,084.78
52-Week Range: $2,231.10 - $3,084.78
Weighted Alpha: +39.79
Gold surged to another round of new record highs, spurred by persistent worries about a developing trade war, rising inflation expectations, and a soft dollar. The yellow metal is poised for its fourth consecutive higher weekly close.
The targeted $3,100 level came within striking distance, but I wouldn't be surprised to see some profit taking ahead of the weekend. Gold has gained more than 2% this week and nearly 9% from the last significant corrective low at $2,835.23 (28-Feb).
The market has become quite overbought on a short-term basis. Additionally, reports that the EU may be preparing to concede on some of its tariffs on U.S. goods may ease trade tensions somewhat.
An intraday chart point at $3,069.52/18 marks first support. Thursday's low at $3,018.51 stands in front of the more important $3,002.89/$3,000.00 level.
Today's earlier high at $3,084.78 now protects the $3,100.00 target. Above the latter, the $3,149.84 Fibonacci level remains a valid objective.
Silver set a fresh five-month high of $34.543 in early U.S. trading before turning lower on the day. The white metal is still poised for a higher weekly close, its third out of the last four.
The white metal continues to be supported by hard-charging gold, red-hot copper, and a weak dollar. While the multi-decade high set last year in silver at $34.853 appears to be safe this week, the trend remains decisively favorable, and any setback is likely to be viewed as a buying opportunity.
An eventual breach of the $34.853 peak would initially shift focus to the $35.348 high from October 2012. However, the trade would certainly start buzzing about $40 and $50 silver at that point.
While such a move is not out of the question, it would almost assuredly be a wild ride. Silver can be notoriously volatile, and if we are to see $50 silver, speculators are likely to get thrashed along the way.
Ross Norman of Metals Daily has written an interesting "rant" on silver. "[T]he commentariat are claiming silver is about to “go parabolic”, “the elites are losing control” … “massive short covering is imminent” … yet they never stop to consider the consequences of all this hyperbole," warns Norman.
When this talk kicks up, the bullion banks are always portrayed as evil market manipulators with huge short positions in the futures market that must be broken to allow silver to find its fair market price. The reality is that the banks are short the futures to hedge their physical holdings.
"[T]hey are price neutral – it's a mechanism to borrow or lend metal to companies for financing or inventory management, such as refinery work-in-process or mine production," says Norman.
Zaner Metals provides hedging services for clients in the precious metals vertical. They are invariably short the market against their physical inventory, so not surprisingly, I concur with Mr. Norman's assessment.
That being said, I do see the long-term fundamentals for silver as quite favorable. I think we do see $50 again, but it may take five years (or more?) to get there with many a wild fluctuation in the interim. Buy and hold has always been my strategy for silver.
Peter A. Grant
Vice President, Senior Metals Strategist
Zaner Metals LLC
312-549-9986 Direct/Text
[email protected]
www.zanermetals.com
Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete, and/or up-to-date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Metals LLC unless otherwise expressly noted.
Gold surges to record on tariff and downgrade concerns, pulling silver to 5-mo highs
OUTSIDE MARKET DEVELOPMENTS: Markets have rotated back to a more risk-averse stance after the White House announced a 25% tariff on all imported passenger vehicles, which will take effect on April 3. The new levy will apply to all cars, SUVs, minivans, cargo vans, light trucks, and key auto parts.
Automakers' shares led stocks lower, and global trade tensions ratcheted higher. Countries that export cars to the U.S. are all contemplating retaliation. “The only solution for the EU will be to raise its own tariffs on American products,” said French finance minister Eric Lombard.
Ongoing uncertainty and worries about an all-out global trade war have weighed on investor and consumer sentiment. The market optimism that emerged late last year when Donald Trump won the Presidency has all but evaporated.
Moody's has warned of a potential downgrade to America's AAA debt rating. "The potential negative credit impact of sustained high tariffs, unfunded tax cuts and significant tail risks to the economy have diminished prospects that these formidable strengths will continue to offset widening fiscal deficits and declining debt affordability," said the ratings agency.
Q4 GDP was revised up to +2.4% in the third report from 2.3% previously, while the chain price index cooled to 2.3% versus 2.4% in the second report. While the revisions were favorable, they weren't significant enough to alter Fed expectations. Prospects for a June rate cut actually dimmed slightly.
Markets will be paying close attention to tomorrow's release of February personal income and PCE data. The market is anticipating 0.3% increases in both the headline and core PCE chain price indexes, which are the Fed's favored measures of inflation.
The dollar index backed off recent three-week highs as the market digests the latest tariff news and the downgrade risk. Recent dollar gains are seen as corrective, although a breach of Monday's low at 103.84 is needed to return focus to the downtrend that has dominated since the first of the year.
Goods Trade Balance narrowed to -$147.9 bln in February, outside expectations of -$135.0 bln, versus a revised -$155.6 bln in January (was -$153.3 bln).
Q4 GDP (3rd Report) was raised to +2.4% on expectations of +2.3%, versus +2.3% previously and +3.1% in Q3.
Initial Jobless Claims fell 1k to 224k in the week ended 22-Mar, below expectations of 225k, versus 225k in the previous week. Continuing claims fell 25k to 1,856k in the 15-Mar week from 1,881k in the previous week.
Pending Home Sales Index rose 2% to 72.0 in February from 70.6 in January. The market was looking for a more modest 1.5% increase.
GOLD
OVERNIGHT CHANGE THROUGH 6:00 AM CST: +$32.10 (+1.06%)
5-Day Change: +$6.89 (+0.23%)
YTD Range: $2,607.16 - $3,056.51
52-Week Range: $2,188.17 - $3,056.51
Weighted Alpha: +37.76
Gold has reached new all-time highs, driven by the latest tariff news and heightened worries about a global trade war. Moody's warning of a potential U.S. debt downgrade has further boosted the haven appeal of the yellow metal.
The breach of last week's record high at $3,056.51 clears the way for a push to the $3,100 level. Additional credence has also been lent to the $3,149.84 Fibonacci objective and the longer-term target at $3,500.
On the heels of BofA's gold forecast upgrades mentioned in yesterday's commentary, Goldman Sachs has also boosted its outlook. Goldman now sees gold at $3,300 by year-end, a $200 increase from its previous forecast of $3,100.
Like BofA, Goldman cited stronger-than-expected central bank demand and solid inflows into gold ETFs.“Central banks — particularly in emerging markets — have increased gold purchases roughly fivefold since 2022, following the freezing of Russian reserves,” wrote Goldman analysts. “We view this as a structural shift in reserve management behavior, and we do not expect a near-term reversal.”
The significance of support centered on the $3,000 level has been reinforced by recent price action. The $3,036.08/$3,031.15 zone now provides a minor intervening barrier.
Silver is trading at five-month highs, helped by fresh record highs in gold and copper, and a softer dollar. These factors seem to be overriding the negative demand implications from auto industry tariffs. 
The auto sector accounts for over 70 Moz of silver demand annually. Silver loading in cars has increased significantly in recent years, particularly as EVs have become more popular. EVs contain roughly twice as much silver as a conventional ICE vehicle.
The breach of last week's high at $34.208 bodes well for the expected retest of the more than 22-year high set in October at $34.853. Beyond that, the $35.348 high from October 2012 would be in play.
I'd like to see silver close above $34.00 today, so I'll call that first support. Secondary support is marked by the low from early U.S. trading at $33.779.
Peter A. Grant
Vice President, Senior Metals Strategist
Zaner Metals LLC
312-549-9986 Direct/Text
[email protected]
www.zanermetals.com
Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete, and/or up-to-date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Metals LLC unless otherwise expressly noted.
Good morning. The precious metals are mostly higher in early U.S. trading.
U.S. calendar features Goods Trade Balance (-$135.0 bln expected), Q4 GDP (3rd Rpt), Initial Jobless Claims, Pending Home Sales Index.
3/26/2025
Gold and silver consolidate recent gains, but uptrends remain highlighted
OUTSIDE MARKET DEVELOPMENTS: The Trump administration's ever-changing positions on tariffs and trade continue to stoke market uncertainty. Concerns that these policies will weigh on economic growth and revive inflation have heightened risk aversion and contributed to market volatility.
Consumption is the major driving force behind the U.S. economy, and high levels of uncertainty have eroded consumer sentiment in recent months. The Conference Board Consumer Confidence Index tumbled 7.2 points in March to a four-year low of 92.9.
"Consumers’ expectations were especially gloomy, with pessimism about future business conditions deepening and confidence about future employment prospects falling to a 12-year low," said Stephanie Guichard, Senior Economist, Global Indicators at The Conference Board.
The Atlanta Fed's GDPNow forecast for Q1 remained in negative territory at -1.8% for the 18-Mar reading, and the blue chip consensus has fallen below +2.0%. An update is slated for today.
The NY Fed's NowCast continues to paint a rosier picture, with a 2.72% Q1 estimate on 21-Mar.
Prospects for a June Fed rate cut have risen lately. The implied Fed funds rate for December is currently 3.7475%, reflecting expectations for 63 bps in easing by year-end.
Minneapolis Fed President Kashkari believes there is more work to be done on inflation, but sees policy uncertainties complicating the Fed's job. Nonetheless, he still thinks the central bank "ought to be able to reduce interest rates further" in the next year or two.
Russia and Ukraine have reportedly agreed to a ceasefire in the Black Sea. "All parties have agreed to ensure safe navigation, eliminate the use of force, and prevent the use of commercial vessels for military purposes in the Black Sea," said Ukrainian Defense Minister Rustem Umerov.
A broader ceasefire and peace deal remain elusive. However, this limited agreement is arguably progress and dials down the temperature in the region somewhat.
MBA Mortgage Applications fell 2.0% in the 21-Mar week, versus -6.2% in the previous week. The 30-year mortgage rate ticked down to 6.71%.
Durable Orders unexpectedly rose 0.9% in February, well above expectations of -1.2%, versus a revised +3.3% in January (was +3.1%). Ex-trans rose 0.7%, and shipments were +1.2%.
GOLD
OVERNIGHT CHANGE THROUGH 6:00 AM CST: +$3.55 (+0.12%)
5-Day Change: -$21.19 (-0.70%)
YTD Range: $2,607.16 - $3,056.51
52-Week Range: $2,174.69 - $3,056.51
Weighted Alpha: +36.79
Gold is consolidating above $3,000 and within striking distance of last week's record high of $3,056.51. The yellow metal continues to be underpinned by haven interest stemming from tariff uncertainty and geopolitical risks.
Four sessions of corrective/consolidative price action have somewhat relieved the overbought condition that developed last week. While further tests of the downside can not be ruled out, the trade should continue to view setbacks as buying opportunities.
The market is certainly good as long as it's above $3,000. A minor secondary chart point is noted at $2,982.85/$2,980.54. More important support is marked by the previous high at $2,955.40, which is now bolstered by the 20-day moving average at $2,960.12.
A short-term breach of last week's high at $3,056.51 would lend additional credence to the bullish scenario that calls for a push to $3,100. Beyond that, the next Fibonacci objective at $3,149.84 attracts.
BofA has upgraded its 2025 gold forecast to $3,063 from $2,750 previously. They now see gold at $3,350 in 2026, a $725 increase over their previous forecast of $2,625!
The bank believes the yellow metal could climb to $3,500 in the next two years if investment demand increases by 10%. They also think central banks could increase gold reserves from current levels around 10% to 30%! That would provide a huge tailwind for gold that could take prices beyond $4,000 in my opinion.
Recent ETF inflows suggest investors do indeed have increased interest in gold. Global ETF inflows were 31.3 tonnes last week, with North American investors accounting for nearly all of that. It was the eighth consecutive weekly inflow.
ETF.com data revealed that flows into the GLD ETF reached $2 billion on Monday. "This rush into gold signals a broader shift in sentiment—investors are diversifying away from U.S. assets, concerned about rising geopolitical risks, trade tensions and central bank policies that may further weaken the dollar," wrote CFP Kent Thune on ETF.com.
"As gold strengthens, a self-reinforcing cycle has emerged: A weaker U.S. dollar makes gold more attractive to global investors, driving up demand, which in turn pushes prices higher and further erodes confidence in the dollar," added Thune.
Silver set a new high for the week at $33.897 in early U.S. trading before retreating into the range. The white metal continues to be underpinned by Chinese stimulus and German spending expectations.
Soaring copper prices are providing additional lift to silver. The two markets are pretty tightly correlated, as silver is primarily a byproduct of copper mining.
Copper has reached record highs on worries about shortages and front-running ahead of impending tariffs. Additionally, Glencore declared force majeure on shipments from its Altonorte smelter in Chile due to a furnace issue.
A climb back above $34 would bode well for the continuation of the uptrend off the December lows. A breach of last week's high at $34.208 would bode well for the expected retest of the more than 22-year high set in October at $34.853. Beyond the latter, the $35.348 high from October 2012 would be in play.
Today's overseas low at $33.570 marks first support. More substantial supports at $32.904 (Monday's low) and $32.767 (Friday's low) appear well protected at this point. The 20-day MA is at $32.930 and bolsters the secondary support zone.
Peter A. Grant
Vice President, Senior Metals Strategist
Zaner Metals LLC
312-549-9986 Direct/Text
[email protected]
www.zanermetals.com
Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete, and/or up-to-date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Metals LLC unless otherwise expressly noted.