"The news conference was a far cry from the market friendly, pro-growth "presidential" comments that Trump delivered at his acceptance speech," wrote analysts at Westpac, adding it left a "veritable laundry list" of questions unanswered.
After tagging $19 the night of Trump's victory, Silver prices have tumbled 15% (the biggest drop since Summer 2013's taper tantrum). However, as large speculators dumped their longs en masse, this week also marked another milestone as Silver drops 24% from its post-Brexit peak (above $21) and entered a bear market once again.
The big story in financial markets this week was the breakout to 13-year highs by the U.S. Dollar, and if there has been any asset class most effected by the movement of the Dollar, it is probably precious metals. While all eyes remain on gold and the psychologically important $1200 levels, it is silver prices that are testing a confluence of potential support levels.
It hasn’t exactly been a blistering pace, but yields have trended upward for the past 4 months. Presently, the TYX is nearing a convergence of 2 trendlines around the 2.65% level that may slow down the rise, at least temporarily.
Could the markets rocket up to 2200, 2300 or 2400 as some analysts currently expect? It is quite possible given the ongoing interventions by global Central Banks. The reality, of course, is that while the markets could reward you with 250 points of upside, there is a risk of 600 points of downside just to retest the previous breakout of 2007 highs. Those are odds that Las Vegas would just love to give you.