Silver Gaps Higher to Start the Trading Week

As the $19 level is under threat, silver prices have gapped upward to start the trading week on Monday. Nevertheless, given the strong resistance in the region, I wouldn't be at all surprised if sellers jumped into the market and underpriced it. The $20 level may be the next objective, even if we break above the $19 level. Since silver is more of an industrial metal than a precious metal, the market will likely continue to view it with distrust.

The current state of the world economy is fraught with uncertainty, which is not the best atmosphere for rising silver prices. As a result, I believe we will keep looking for rallies you may join and then start fading. I think that sector is also another spot where you might see sellers reappear because the 50 Day EMA is now around the $21 level and declining fairly swiftly.

Breaking down below the $18 mark below would allow for new selling that might take us much lower. In the end, I believe that this market will continue to exhibit "fade the rally" characteristics, barring a significant shift in the Federal Reserve's attitude on monetary policy. I just don't see it occurring anytime soon, therefore from what I can see, the silver market is still in dire straits. In reality, the majority of commodities appear to be seriously in danger.