According to TD Securitieshigh global demand and the reduction in interest rates by the Federal Reserve make the outlook for Silver more promising than ever.
However, its advanced CTA position tracker suggests that the timing for a bull market could be delayed.
If prices rise above $27.50, Silver could become a reference value
“Silver could be the most interesting trade of the energy transition that no one is talking about. The current pace of demand growth is going to completely deplete our estimates of LBMA 'free float' inventories over the next two years, with a cycle of Fed cuts that could reduce this period to less than twelve months.”
“This creates a significant liquidity risk that could dramatically fatten silver's right tail. This thesis has little to do with recent price developments, and in fact, our advanced positioning analyzes suggest that the timing for silver rallies “silver is not the best. We expect CTA selling activity to weigh on silver markets unless prices can rebound above $27.50/oz in active silver.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
