Silver is trading slightly above the 19.00 level. Strategists at TD Securities expect the precious metal to extend its decline.
The additional downside in demand on the horizon
“Our quantamental indicators are pointing to the additional downside in demand on the horizon, which fits with the weakening in growth dynamics. However, silver markets appear particularly vulnerable to the additional downside, given their little exposure to the rise in supply risk premia that has supported industrial metals.”
“We also expect its precious-metal allure to fade into the Jackson Hole symposium, where we expect Chair Powell may push back against market expectations that rate cuts may immediately follow the hiking cycle.”
“As the pain trade in gold gathers steam, we anticipate a capitulation event in gold that should further weigh on silver prices.”
Silver Short (Sell)
Enter at: 18.754