Silver Futures Index $SILVER (SILVER)

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Star Spangled Silver Breakout. Manic Metals Report
By: Phil Flynn | July 3, 2024

The silver market knows how to celebrate independence by breakout for the resistance that bound it. Silver seems to have ended its correction and traded at the highest level since the first day of summer June 21st, as the dollar rally is looking vulnerable and reports of strong physical demand.

As Myra Picache at MarketWatch pointed out that silver outpaced not only gold in the first quarter but copper and the S@P 500.

She Wrote that “Metals marked a “generally” positive second quarter, analysts at Deutsche Bank said in a note dated Monday.

The total return for silver’s spot price was at 16.7% for the period, while copper’s was at 9.6%, with both posting their strongest quarterly total return performances in six quarters, Deutsche Bank said. Gold’s 4.3% return in the second quarter, meanwhile, was its third straight quarterly gain.

Silver, which is a very good conductor of electricity, is seeing increased demand for uses in solar panels and semiconductor chips, Caruso said. There was a notable jump in solar-panel demand last year, and now demand for artificial-intelligence chips has silver “front and center from a demand perspective.”

Based on the most-active futures contracts, silver climbed by 18.6% in the second quarter, outpacing gold’s 4.5% rise and copper’s 9.6% climb, according to Dow Jones Market Data. For the first half of this year, silver futures posted a rise of 22.7%, compared with gains of 12.9% each for gold and copper futures.

The key for silver today will be the ADP jobs report we also have early speech from fed chairman Paul and the market will have any indications on interest rates but because it looks like the dollar is starting to look choppy it’s very possible that we can see a nice pop not only on silver but across the metals complex

Palladium looks like it’s also broken out and platinum has a very strong possibility to catch up to silver.

Political uncertainty of course is also going to give some support to the metals. Not only overseas but here in the United States.

Kitco Metals wrote that :”The prospect of a Trump victory in November could push investors around the world into the yellow metal, while both gold and silver prices stand to benefit from tariffs and trade disputes, according to precious metals analysts at Heraeus. “

In their latest precious metals report, Heraeus suggested that the economic policies of a second Trump administration could drive global investors into gold.

“The upcoming 5 November presidential election will set the United States on two fundamentally different paths, depending on the outcome,” the analysts wrote. “The more unpredictable former president and current Republican candidate, Donald Trump, may introduce several economic policies that could lead to significant market shocks, geopolitical risks and rising inflation. Trump currently maintains an edge over Biden in the polls – 46.9% vs. 45.0%.”

I think they need to calm down everybody has to remember that all the predictions of economic doom and gloom the first time Donald Trump became president turned out not to be true in fact we saw the markets really soar under Donald Trump we saw inflation low and this fear mongering about the so-called trade wars I think it’s overstated for metals still there are other reasons to be long metals right now because inflation is still an issue and because the dollar more than likely is at a top.

WE will see how the ADP report looks but we continue to look to buy breaks.

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