With Gold Prices Near Record Highs, Silver Futures Are a Value-Buying Opportunity

Jim Wyckoff Barchart Mon Jun 2, 9:04AM CDT
Stacked silver bars by Tookapic via Pixabay

September silver futures (SIU25) present a buying opportunity on more price strength. 

See on the daily bar chart for September silver futures that prices are now in the upper boundary of a sideways and choppy trading range. See at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as the red MACD line is above the blue trigger line and both lines are trending up. 

Fundamentally, safe-haven demand for silver is still present in the marketplace amid geopolitical events that remain on or near the front burner. Such is likely to continue for at least the near term. Given the push in the gold market (GCM25) to record highs in recent weeks, and silver prices not doing the same, many precious metals traders consider silver to be a value-buying opportunity at present price levels.

A move in September silver futures prices above chart resistance at the top of the aforementioned trading range, at $34.30, would give the bulls more technical power and it would also become a buying opportunity. The upside price objective would be $39.00, or above. Technical support, for which to place a protective sell stop just below, is located at $32.50.

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IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you. 


On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.