CTAs will continue to buy Silver – TDS
|
While a few false dawns have emerged in the past, spot and futures prices are both finally breaking out of the wedge that has contained Silver markets from the 2024's local top not reached since 2012, TDS' Senior Commodity Strategist Daniel Ghali notes.
A confirmed break from the wedge may attract further interest
"The breakout in futures markets is relevant as it is likely to catalyze CTA buying activity which directly attracts new directional inflows, which may become self-reinforcing. The break north of $31.55/oz in SIH5 will only force CTAs to buy +4% of their max size, but CTAs will continue to buy Silver in (nearly) every scenario for prices over the coming sessions, barring a sharp reversal (akin with a big downtape)."
A confirmed break from the wedge may also attract further discretionary trader interest, particularly with Gold prices pushing towards all-time highs, given evidence that while this cohort may be involved in the EFP dislocation, they remain directionally flat.
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.