Precious metals are bouncing due to a potentially recovering global economy which exerts renewed demand on silver and gold by countries such as China, then European nations, UK, and the US, since economies somewhat correlate. Meanwhile, should the US economy recover sufficiently, the Fed would slow quantitative easing, which is bad for precious metals. Thus, a tug-o-war ensues between these two issues. Since the Fed will not be slowing QE until September at the earlier, and even then, they are likely to hold off any slowing of QE because they dont want to be hasty in unsettling the fragile economy, silver and gold may enjoy a brief uptrend.
SLV is having a pocket pivot in today's trade as it firmly moves above its 50-day moving average. Knowing that SLV can be volatile and sloppy, position size accordingly.
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