Spot Silver (XAGUSD) : Buy if there’s a dip
We gave 35 as the target, but Silver has raced past, and as noted a fortnight ago a price tag of US$ 50 during the course of 2011 looks very likely.
• We are unsure as to silver’s fortunes in the days ahead, and hope for a quick pullback to 34.60 or so.
• Friday’s late charge might have been more ‘weekend insurance’ than new position taking, so at current rates we would shy off on chasing this raging bull on steroids.
• With 34.60 as first support below the 35 mark, Silver now has quite a decent cushion to soften any fall – from about 34.30 to 34.60, and if this range holds, then a new high to 35.95-36.00 or so will likely be seen in the very near term.