Silver Nearing Long Term Support

Silver is seeing depreciation in recent days due to a normalization in international relations between North and South Korea and the US. As the Korean leaders are reaching agreements on denuclearization, President Trump is planning a meeting with Kim Jong-un in two to three weeks.

All of this seems to be speaking comfort to investors who are now fleeing the precious metals market and going to currencies and equities.

Silver went from 17.30 to a low of 16.40 and is now gravitating towards the mids of 16. If the negotiations between the parties continue in the same friendly and feel-good manner, we could expect Silver to hit the long term support at 16 and possibly bounce back off that level as bulls initiate their buy orders.

Chart: XAG/USD D1