Silver

Commodity trading has grown from a physical market to a largely digital one used by traders and investors to hedge positions and speculate on the future.

Tumbling bank stocks and a sharp slide in crude oil prices are highlighting financial stability and recession risks, underscoring our bullish silver outlook.

Falling US dollar is boosting the silver forecast, along with gold and copper. Precious metals have had a great month so far and that run could continue.

Gold has not formed a bearish reversal signal yet, although silver’s sharp drop today may be a warning for what’s to come.

Silver prices have rallied nearly 40% since the September low, yet key resistance looms around $25 and a multi-week bearish divergence is forming.

The most traded commodities are energy sources like oil and gas, plus metals such as gold and agricultural products. Here we break down the top ten most traded commodities and explain how each one is traded.

Out of the two metals, silver was the most impressive as it jumped over 7%, the most since Feb 2021

Out of the two metals, silver was the most impressive as it jumped over 7%, the most since Feb 2021

gold has been a victim of a strong US dollar and rising bond yields, making this non-interest-bearing commodity less appealing for yield seekers.

Silver (XAG/USD) has tumbled over 19% since April 18th.

Covid reared its ugly head again on economic data, which saw China’s service PMI contract at its fastest pace since the pandemic.

Tentative signs that the war between Russia and Ukraine could end sooner than expected and hints of a compromise from Ukraine helped Wall Street bounce overnight.

Traders continued to pile into long bets on gold and silver last week, whilst offshore ruble speculators seemingly ran for cover.

European equity markets and the euro currency sustained heavy losses on Friday as fighting in Ukraine showed no signs of receding.

Whilst the FTSE has been one of the stronger performers during a risk-off period for equities, 7600 remains a level which defies its next breakout.

Kiwi bulls appeared spooked last week as we saw gross longs closed at their second fastest rate on record.

There are sufficient tailwinds in the global economy and the possibility of further geopolitical tensions to give gold support, but not necessarily drive prices higher...