(Kitco News) – Though unable to carry a 3% rally late final week, the silver worth remains to be in fine condition and buyers simply must be affected person, in keeping with one market analyst.
David Smith, senior analyst on the Morgan Report, stated that though silver fell sharply from its highs Friday, the worth remains to be holding assist at $18 an oz..
“It’s quite common for makes an attempt to push up by to resistance to fail the primary time,” he stated. “The silver worth nonetheless managed to shut above $18, which is a breakout on the descending triangle chart.”
Wanting on the silver miners, Smith stated that costs nonetheless have to push larger for producers to see the identical results of gold corporations. With third-quarter earnings beginning to trickle out of the mining sector, gold producers are seeing wholesome margins and elevated money flows with gold costs up about 16% up to now this 12 months. To see the identical circumstances for silver producers, Smith stated that costs have to commerce near $20 an oz..
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