For the most part, silver and gold are still taking their cues from the oil and dollar markets. These physical commodities follow the oil market directionally, but move to the inverse of the dollar.
Right now, silver is by far the weaker of the two metals, as it just can’t seem to muster up a sustained rally for some reason. It continues to trade at the low end of its recent range.
The December futures contract currently trades around $12.10 an ounce, which is well off its last high of $19.70 an ounce on July 15. This equates to a dollar change of $7.60 an ounce, or $38,000 with the silver point multiplier. That’s a big chunk of change in that short period of time.
From a technical perspective, silver is still oversold, but it’s hard to pick a bottom from here. What we can say is that if the dollar starts to sell off and the oil market starts to move back up, we could see a nice rebound for silver.
