An emotional start to Monday for precious metals traders in Asia. Silver breaking 20.00 shortly after Shanghai metals opened. XAG/USD then rallied a whopping 7% in ONE hour to around 21.10 as early Chinese demand turned into a stop loss rout. The door is always small when everyone runs for it at once.
The GOLD/SILVER ratio may also have played its part. Having broken 71.00 on Friday in New York we took out the Friday lows in Asia as well for a spike to 64.00.
Calmer heads have since prevailed and Silver now lies at 20.25 still some 2.50% higher on the day.
Interestingly in OANDA Labs, much of the long positioning this morning seems to have been put on post the break of 20.00 as well.
Support intra-day will be the New York high at 19.85 with resistance this mornings high around 21.15.