Summarize and follow the platform quote. The precious metal this time amplified its gains after exceeding $60 an ounce for the first time in the last ten years, when it gained more than 4% in session. The precious metal is being boosted by a supply shortage and calls for more monetary stimulus from the U.S. Federal Reserve.
The white metal rose 1.6% this month, so far it moderated prices by 0.7% and touched a record high of $61.6145 per ounce. Its rapid rise in recent days has been supported by hot money suggesting the US central bank will implement a quarter-point cut on interest rates following its meeting today, December 10. Lower debt costs could boost non-revenue-generating precious metals. In bond markets, global yields have reached levels not seen since 2009.
“The platform has a large minority and speculative base,” explains David Wilson, director of commodities strategy at BNP Paribas. “Once bullish momentum is generated, it tends to attract more money.”
The market is also closely monitoring the Fed’s decision this week, looking for clues about U.S. monetary policy for next year. Kevin Hassett, President Donald Trump’s leading candidate to replace Jerome Powell as head of the Fed, says he has plenty of room to significantly cut costs.
Silver has more than doubled its value this year, eclipsing the price of gold by 60%. Its rally has accelerated since a historic supply contraction in October. Although this has been alleviated by an increase in metal flows to London depots, lending rates remain high, indicating a continuing shortage. Other markets are also facing supply restrictions, with Chinese stocks at their lowest in a decade.
The rally also received support from inflows into equity funds (ETFs). Last week, silver-backed ETFs made more money than any other week since July. Call option volume in the majority of these funds increased to a level similar to that observed during the period short press –Those who bet on the low tuvieron which offsets their positions to limit losses due to rising prices— which shows that the inverters are positioned for bad rises.
The silver market has become “overexcited” and prices are about 15% too high, according to Guy Wolf, global head of market analysis at Marex Group, who recently reported that the interests of private wealth managers looking for alternative investments are currently benefiting precious metals.
Given the response of around 20% over the past three weeks, “logically we should arrive at a correction”, believes Wilson of BNP Paribas. “But given the strong positive sentiment in the markets right now, with some people talking about the $100 platform, it’s entirely possible that the momentum will continue.”
Undulators are also seeking clarity on themselves and will force advancements on the board, even though the white metal was added to the country’s list of critical minerals last month. This concern has kept some of the metal domestic, keeping stocks on the Chicago Market (Comex) at an all-time high, although they have retreated from October’s peak.
The price rose 0.7% to $61.44 an ounce in London. The price is slightly lower at $4,221 per ounce.
About The Author
