Listen to the latest market mood for the XAGUSD pair.
Falling US 10 year bond yields have weakened the dollar and that has pushed silver higher alongside gold. The picture for silver bulls remains firmly in place with low interest rates, no fed rate hike projected for the next 2 years, mass money printed by Govt’s around the world, poor returns expected in equity markets, and the medium term weak US dollar perspective all fuels silver’s rise. The benefit of silver over gold is that silver still has a long way to go in order to reach new highs.
Therefore, expect silver buyers on pullbacks to the key weekly support level.
We expect this trade to play out between now and the next 1-2 weeks.
Trade Risks: If we see a sharp recovery in the US economy that will invalidate the bullish silver outlook.