Stretch Becomes a Factor
The chart still looks heavy on the stretch side. Silver sits far above the 50-day moving average at $54.89, leaving a gap of $17.81. That’s hot, and while it doesn’t break the trend outright, it does ramp up the chance of a short-term shakeout. The first real marker beneath the market remains the short-term 50% level at $66.75, drawn off the $60.80 swing low. A quick drop into that zone wouldn’t shock anyone who’s traded a parabolic move around a thin holiday schedule.
Precious metals cooled after a burst of record highs. Gold eased back after touching $4,500, with some light profit-taking. Platinum pulled off its own peak. Silver held up better than both, last trading near $71.85, up 0.52% on the day. Even with the breather, sentiment stays firm — silver’s 148% year-to-date surge still dwarfs gold’s more than 70% climb.
Rate expectations continue to support the precious-metals bid. President Trump’s comments about preferring a Fed chair who cuts rates when markets are strong helped keep traders leaning dovish. Markets are already pricing two Fed cuts next year, and that’s kept dip-buyers close. On the geopolitical side, the U.S. Coast Guard’s pursuit of a Venezuela-linked tanker adds another layer of tension, but it hasn’t dented interest in the metals space.
How Traders Are Positioning Into the Holiday Gap
With the market closed Thursday for Christmas and activity thinning out, traders are tightening risk. The next upside number in the conversation is still $75.00, but nobody’s chasing it blindly. Fast money wants either a retest or a clean shakeout before leaning harder into fresh longs. For now, though, nothing suggests buyers have lost control — they’re just more selective after Wednesday’s spike.
Short-Term Outlook: Pullback Risk, Trend Intact
Bottom line: silver still wants higher levels, but the stretch from the 50-day makes a quick pullback a real possibility as liquidity dries up. If sellers press it, $66.75 is the first spot to watch for dip-buying interest. Holding that level keeps the door open for another run at $75.00 once full liquidity returns on Friday.
More Information in our Economic Calendar.