Silver has finally joined its other rivals as the metal market has been performing well lately. All eyes are now set on silver as its prices started the week with huge follow-through buying after a convincing breakout this week.
On Tuesday silver futures traded at around $17.5 a gain of 0.07% from its Monday’s closing price of $17.468
Just recently reports revealed that mining output that includes silver and gold production dropped11.2% the sharpest monthly loss in history, thereby reducing precious metal production. Commodity strategist at Saxo Bank, Ole Hansen explained:
“Nobody really talks about the mining numbers in this report, but someone was obviously watching it. The data points to tightening physical supply. Silver prices are going higher because the market is getting a lift from all different angles.”
Investors reduced their long bets on silver as the COVID-19 pandemic was wreaking damaging throughout the entire world. Chief market strategist at Blue Line Futures, Phillip Streible Hansen added:
“We have to contemplate the risk of a second wave of the virus wave in the second half of the year; together with a developing Trump versus China blame game. With these developments in mind, we see the risk of renewed stock market weakness, a stronger dollar; and Japanese yen on safe-haven demand… precious metals look set to rally further on safe-haven and diversification demand.”