In today’s video we look at spot silver prices, which fell below $22 yesterday for the first time since September. Momentum is clearly aligned for further losses, yet the market has stalled above several levels of support. Therefore, the contrarian trade is based up a weak inflation report (which removes pressure from the Fed to taper at a faster pace) could actually make an ideal entry for bulls. But if markets get what they crave, which is strong CPI and a hawkish Fed, it could be a case of ‘look out below’ for silver.
Related analysis: EUR/USD perks up ahead of US CPI (with seasonality on its side)
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