Silver markets are likely to be weighed down by CTA selling activity, TDS macro analyst Daniel Ghali notes.
Fundamental outlook for Silver remains strong
“Current price action is already consistent with a selling program totaling -6% of algos’ max size, equivalent to -28% of their current position size. The fundamental outlook for Silver remains strong, with Silver-for-solar continuing to make inroads and progressively capturing a growing share of total Silver demand as next-gen technology adoption continues to beat expectations, with notably higher Silver loadings.”
“Signs that Chinese manufacturers have started to thrift Silver are worth noting for the longer-term outlook, but likely won’t make a dent in Silver demand growth for the coming year. Evidence of reflationary trends emerging should also be best expressed in the White Metal, given traditional industrial demand has been the primary concern over the last months in addition to risks emanating from gold positioning.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Information contained on this page is provided by an independent third-party content provider. This website makes no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact editor @cedarcity.business