The bulls in the precious metals space enjoyed a brief departure from the violent selling pressure they’re experienced all year, but unfortunately, it’s been short-lived. Silver (SLV), which has plunged more than 5 percent this week, and gold (GLD(NYSE:)) falling more than 3 percent are both evidence of this. These negative returns occur despite the fact that negative real rates are still in negative territory. This is usually a good backdrop for precious metals. While many investors are likely frustrated by the selling pressure, it’s important to note that nothing goes up in a straight line, and these pullbacks are entirely normal, as long as key support levels are held. For now, silver continues to hover above its key support area at $22.00/oz, and key ratios also continue to remain in a positive alignment, with the silver/gold ratio above its multi-week moving average.The bulls in the precious metals space enjoyed a brief departure from the violent selling pressure they’re experienced all year, but unfortunately, it’s been short-lived. As evidenced by the fact that silver (SLV) has fallen more than 5 percent this week, and gold (GLD), slipping more than 3 percent. These unfavorable returns have occurred despite negative real rate levels remaining in negative territory. This, however, is a typically positive background for precious metals.

While many investors are likely frustrated by the selling pressure, it’s important to note that nothing goes up in a straight line, and these pullbacks are entirely normal, as long as key support levels are held. At $22.00/oz silver is holding steady. Key ratios remain positive with silver/gold above their multi-week moving mean. It is possible that the current shake-out may not be a continuation or a continuation to the 2021 cyclical bear. Let’s take a closer look below:

(Source: TC2000.com)

Continue reading on StockNews