![]() ![]() These headwinds have contributed to silver’s price underperforming that of gold, they said, with the gold:silver ratio “climbing from 78.5x to 85x” in May. “This is reflected in an easing in the Shanghai spot premium, which has been falling since April with retreating silver imports.” They added that India’s imports appear to be leveling off following an exceptionally strong 2022. “Weakening economic growth in China is dimming prospects of industrial demand,” they wrote. Turning to physical demand, ANZ said that developments in physical markets were not encouraging either. “Institutional investors have also liquidated 235t of ETF holdings during the same time.” “Speculators liquidated 2,150t of long positions in the last three weeks of May,” they wrote. The analysts note that investors have been selling off their silver holdings in recent weeks. Gold prices have pulled back over the last six weeks, with XAU/USD trading at $1957.24 at the time of writing, up 0.7% on the session but well off its early May highs above $2050. The authors write that weakening demand from the Asian giants remains a short-term drag on silver, and note that “Silver normally underperforms when the gold price is falling.” ![]() Silver investors shouldn’t expect any positive price action in the near term, but the precious metal is still on track to finish the year on a high note, according to a new research report from ANZ. Receive a comprehensive recap of the day's top stories directly to your inbox. Get all the essential market news and expert opinions in one place with our daily newsletter. ![]()
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