Overall Sentiment
- The white metal is in a great position to extend its recent gain but we fear that it may soon run its course and perhaps consolidate first
Speculative funds positioning
- Speculative funds turned negative amid strong selling interest but with the price now higher, shorts are under pressure to cover
Bullish perspective
- Gold:silver ratio has turned lower after a strong rejection (see chart below)
- Safe-haven demand is still high and that should keep the bullish momentum in-tact for now.
Bearish perspective
- RSI is about to hit technical resistance and some sort of consolidation is not a surprise
- Price action still trades within a downward channel (see weekly chart below)
Conclusion: Silver is attempting to form a rather bullish monthly candle which should bode well for late buyers to join and buy the dips.
XAG/USD
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