Silver (COMEX:SIV14) continues to “lose its luster” as new highs in the U.S. Dollar again weigh heavily on the precious metals. Both silver and gold made new contract lows this morning in the December contract as the dollar continues to tear higher.
Provided the market continues to put in new contract lows, there’s not much that can be gained in terms of potential support targets by looking at the December chart and those looking for longer term support should consider using a continuous chart. There are a few structural points at 17.325 and 17.440 that could provide initial resistance to any corrective strength in the silver market.
Above here, more significant resistance will likely be seen at 17.670. Given the negative theme of the market, the opportunity appears to be on the short side of this market. As long as the Dollar remains strong, which at this point has given us no evidence to expect otherwise, traders should anticipate further weakness in the precious metals.