Last Year Silver Prices Soared $4/oz in June.
Are We Setting Up For Another HOT Summer?
With First Notice Day behind us, gold prices surged back over $1270 today. The move ensured a monthly close for gold above the 6 year downtrend line, a very important technical development that sets gold up for a potential summer breakout once $1300 is taken out to the upside.
With gold breaking out, the cartel turned their attention to silver today, as the white metal was capped and actually knocked down 15 cents in today’s session to $17.30.
Silver’s run was getting a bit extended however after over 2 weeks of nearly consecutive gains saw price rally $1.50/oz from the lows.
Hopefully the current breather will be temporary much like silver’s consolidation in late January prior to putting in another $2 leg higher.
$18 silver remains a critical level as we expect once silver is able to regain $18 and place a weekly close above the level, a retest of $20 and last summer’s highs is likely.
As May draws to a close, we would certainly take a replay of the June 2016 breakout for the silver market.