Importantly, new ATHs in gold could ultimately catalyze a breakout in silver markets where we see unique implications of dislocations in metals markets associated with tariff threats. The market is sleepwalking towards a #silversqueeze, says Daniel Ghali, Senior Commodities Strategist at TDS.
The XAU/XAG ratio is at its highest
“A breakout appears imminent given a) the XAU/XAG ratio is at highs, b) CTAs and discretionary traders both have a significant amount of dry powder to deploy, c) aggregate silver open interest in SHFE is at multi-year lows, but the biggest operators in Shanghai have been adding to their books in recent months.
“d) Silver in London continues to trade tight, e) assumptions that any potential #silversqueeze will be easily resolved fail to recognize that pressure release valves require higher prices first before they can activate. The explosive convexity to the upside in “Silver markets remain severely undervalued.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
