Chart of the day: Silver’s tarnished image
While spot gold has given up half of this year’s gains, platinum and silver are leading on the way down, trading at some of their lowest levels in a year. Possibly interest in these has moved into bitcoin, or maybe their raison d’être as a store of value is being questioned. Silver weakness has been especially
apparent over the past three weeks, moving up from 75 to 79 ounces to one of gold. Now worth a fraction of 2011’s record high at US$49.50 per ounce – yet well above 1991’s record low at US$3.50 – we expect it to retest this year’s low at US$14.86 to target secular Fibonacci retracement support at US$14.48 because momentum is bearish and it is not oversold.
Nicole Elliott is a technical analyst