Listen to the latest market mood for the XAGUSD.
The fundamental picture for gold to find buyers is well reported amongst market participants. However, alongside gold gains, silver is also expected to increase. Expectations of a low USD, low-interest rates, high levels of QE, and a Biden Presidency are all anticipated to be positive for both gold and silver.
This means that silver is also a potential medium-term buy with buyers expected on pullbacks to key support.
- The main risk to this trade is if President Trump finds a way to contest the US election as this should strengthen the dollar and weaken silver in the near term.
- If the Federal Reserve signals a surprise shift in rising rates this will invalidate this outlook.
- Any serious reason for USD strength will invalidate this outlook.