Silver Stuck at $11.00

Sivler has been hoovering around the $11 mark for a few weeks now and even though there was a recent charge up in prices the payroll reading and dollar outlook have pulled back on the thought to be re-emerging bullish silver.

Neal Sloan has daily commentary on the commodities and metals markets that we found interesting today. He points out that even with a lower than expected payroll reading silver will continue it’s rise due to demand factors in other commodities such as copper.

He too sees a stagnant $11 silver that should increase through the shaky dollar and even with a fed that holds interest rates at the next meeting.

Here’s what he says about the $11 an ounce price we are seeing and what pressures could effect or not effect it.

“While the silver market seems to have entrenched above the $11.00 level, we are somewhat concerned about the lower volume and open-interest pattern on the recent rally. There is an old gap on the charts down at $11.20 to $11.13 and that area could easily be filled today in the wake of a soft payroll reading. It is also possible to see an ultra-strong payroll reading apply pressure to silver prices, but we are doubtful of that result. We think the overall uptrend pattern in silver will remain intact through the action today but we suspect that some early weakness will be seen.”

Daily Commodities Comments
for 7/07/2006 

 

 

 

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