XAG / USD under pressure as crowd buying disappears

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  • Silver prices are down nearly 1.5% this week.
  • Retailers fail to force a short squeeze similar to GameStop.

The plata (XAG / USD) it is trading near the $ 26.50 level at time of writing, which is down 1.15% on the day.

White metal rallied 20% between last Thursday and early Monday, hitting an eight-year high at $ 30.03as the coordinated buying effort organized through social media platforms sparked fears of a short squeeze (price hike due to the closing of bearish positions) and resulted in an increase in physical demand.

However, the short squeeze has remained elusive, and hedge funds have maintained a net bullish position. Prices fell more than 8% to the level of $ 26.69 on Tuesday and they have had trouble recovering ever since.

The decision of the Chicago Mercantile Exchange (CME) of increase the margin required to trade in the silver market, managed to dominate small investors.

The probability of silver experiencing a short squeeze due to the GameStop-like bulk purchase was always low, given that the market size of the white metal is more than $ 1 trillion, significantly higher than the market capitalization of GameStop.

Silver technical levels

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