XAGUSD long

Silver has been struggling at ~$18.32 for over a month but today's breakout seems to be on some strength.

Before entering you may want to wait for a test around $18.50 or even at the $18.32 level again. On the other hand, Covid seems like it's going to get worse before it gets better and that may send PMs higher in the short term.

I'd either hedge this by being long on the S&P500 or place a stop loss a little under the 10dma which is sitting at $17.92

Comment:

Not sure if it's the PBoC trying to defend the Yuan or folks having to sell to cover margin, but we did get the dip not just to $18.32 but even down to $17.86, just under the 10dma. Will need to see it stay above the 10dma if this move is going to continue higher!

Trade closed: stop reached:

And here we see the importance of stop losses...in a market panic, all assets correlate and commodities are no exception. While I do expect a sharp rebound in spot prices on both gold and silver, such an event won't occur until the panic (and thus the margin calls) ends.