Silver Bullet in Asia. XAG/USD jumps 7%

image silver

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.

Silver 4 July

Support intra-day will be the New York high at 19.85 with resistance this mornings high around 21.15.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Currency Analyst
Based in Singapore, Jeffrey has over 25 years experience in the financial markets, having traded currencies, options, precious metals and futures. Jeffrey started his career at Barclays Bank in New Zealand. However he has spent most of it in London and Asia.Jeffrey focuses on the Asia time zone across asset classes. A regular commentator on business news TV and Radio, he is originally from New Zealand and holds an MBA from Cass Business School, London.