Silver could be just the most exciting trade – TD Securities

Source Fxstreet
Apr 4, 2024 13:58

High global demand and the Federal Reserve cutting interest rates ensures the outlook for Silver has never been brighter, according to TD Securities. 

Their Advanced CTA Position Tracker suggests the timing for a bull market may be delayed, however. 

If prices can rally north of $27.50 Silver could be made

“Silver could just be the most exciting trade of the energy transition that no one is talking about. The current pace of demand growth is set to completely deplete our estimates of the LBMA's 'free floating' inventories over the next two years, with a Fed cutting cycle potentially shrinking this timespan to less than twelve months.” 

“This creates a significant liquidity risk that could dramatically fatten silver's right tail. This thesis has little to do with recent price action, and in fact our advanced positioning analytics suggest the timing for silver upsides isn't great. We expect CTA selling activity to weigh on silver markets unless prices can rally north of $27.50/oz in active silver.”

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold price plunges to one-week low on strong US data and rising Treasury yieldsGold price tanks for the third straight day on Thursday, refreshing one-week lows after economic data from the United States spurred a jump in US Treasury yields and boosted the American Dollar.
Source  Fxstreet
Gold price tanks for the third straight day on Thursday, refreshing one-week lows after economic data from the United States spurred a jump in US Treasury yields and boosted the American Dollar.
placeholder
Crude Oil backslides into the red on Thursday as diminishing rate cut hopes weighWest Texas Intermediate (WTI) US Crude Oil slid to fresh lows on Thursday in a risk-off bid sparked by rate cut hopes drying up on the back of fresh concerns that services-side inflation will continue to run hotter than hoped.
Source  Fxstreet
West Texas Intermediate (WTI) US Crude Oil slid to fresh lows on Thursday in a risk-off bid sparked by rate cut hopes drying up on the back of fresh concerns that services-side inflation will continue to run hotter than hoped.
placeholder
WTI trades sideways around $79.00 with eyes on PBoC policy decisionWest Texas Intermediate (WTI), futures on NYMEX, are stuck in a tight range slightly below $79.00 in Friday’s New York session.
Source  Fxstreet
West Texas Intermediate (WTI), futures on NYMEX, are stuck in a tight range slightly below $79.00 in Friday’s New York session.
goTop
quote