(C) Reuters. Silver Market Approaching Important Buy Levels
Silver (SLV) has fizzled in recent weeks as it’s given back the bulk of its move higher. However, fundamentals remain supportive as the metal should rally with low rates and budding inflationary pressures.It’s been a rough finish to Q2 for the precious metals complex, and neither gold (GLD (NYSE:GLD)) or silver (SLV) have been a sanctuary from the relentless selling pressure. This has pushed gold’s year-to-date return back into negative territory at (-) 6%, with silver not far behind at (-) 2% near $26.00/oz.
While this negative reaction to lower real rates and a still very dovish Federal Reserve is discouraging, it’s important not to lose sight of the big picture and be mindful of how a key ratio is acting. Thus far, both price and this key indicator remain on bullish readings, and the violent correction is now pushing sentiment closer to a bullish reading as well. Let’s take a closer look below:
Silver Market Approaching Important Buy Levels
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