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IPMI and Industry News: Silver Market News

Silver surges as the 'buy-everything' sentiment in markets pushes the precious metal higher, gaining

Tuesday, July 28, 2020   (0 Comments)
Posted by: Matt Watson
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Silver surges as the 'buy-everything' sentiment in markets pushes the precious metal higher, gaining 85% since March

Shalini Nagarajan

Jul. 22, 2020, 04:51 PM


  • Silver exploded 7% on Tuesday, likely driven by positive news from promising COVID-19 vaccine candidates and the European Union's $860 recovery package aimed at long-term investments.
  • The commodity may benefit from the "buy-everything" global reflation trade prevalent in markets this week, a market analyst at OANDA said.
  • "The reopening trade is triggering strong industrial demand for silver and now that the $20 level has been cleared, bullish momentum might not see much resistance until its closer to the $22.50 level," according to OANDA's Edward Moya.

Silver rose as much as 7% on Wednesday, the latest surge in the precious metal's 85% price increase since March.

"Silver may have been the beneficiary of a double whammy," Jeffrey Halley, an Asia Pacific senior market analyst at OANDA said in a Wednesday email.

"Firstly, as the poor man's precious metal, catching gold's tailwind from negative real yields across the US yield curve. Secondly, it has industrial applications and will thus, benefit from the buy-everything global reflation trade prevalent in markets this week," he wrote.

Silver has "serious liquidity issues" when compared to gold futures, which means that when the commodity sees price movements, they can be extreme, he said.

He noted that until silver has a severe setback, the momentum in stock markets, energy, and commodities driving it higher is unlikely to waver.

As of around 10.40 a.m. ET, silver had pulled back from its high of the day, and was trading at $22.25, a gain of 4.5%.


Read the full article at:  https://markets.businessinsider.com/news/stocks/silver-price-today-strong-industrial-demand-for-the-precious-metal-2020-7-1029421012#

 

 

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