Much more than the Gold market, the actual momentum continues to be seen in different treasured metals markets, most not too long ago, significantly in Silver, Commerzbank’s Head of FX and Commodity Analysis Thu Lan Nguyen reviews.
Silver stays priced cheaper than Gold
“After Silver costs surged to a brand new file excessive of simply over $53 per ounce — a achieve of as much as 120% because the starting of the yr — a correction started early this morning. The sharp worth enhance over the previous few days has additionally been pushed by provide issues, as seen in different steel markets.”
“Experiences point out that bodily steel demand from India has not too long ago picked up considerably, fueling fears of provide bottlenecks, significantly within the London market. For instance, lease charges (the price of borrowing Silver), which have made an unprecedented bounce, level to liquidity points in that market. In the meantime, declining inventories at COMEX because the starting of the month may point out outflows towards London.”
“Nevertheless, the correction in costs this morning exhibits that the market had overheated. If the Gold worth rally continues, nonetheless, Silver costs are prone to stay well-supported. Traders searching for extra reasonably priced alternate options as a result of excessive worth of Gold will proceed to show their consideration to Silver, which, regardless of its rally, stays priced cheaper than Gold.”
