Silver: The possibility of spot buying is increasing day by day

Silver: The possibility of spot buying is increasing day by day

Silver breakout in the previous session fueled strong price action (+3.5% close/close in SIH5) associated with multiple consecutive CTA (Call To Action) buying events that ultimately increased their net long to 70%, equivalent to +13% of the CTA’s maximum size, as repeated whipsaws diminished the strength of the trend signal.

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Trump India-US trade talks

US tariffs and strong US dollar may drag down industrial metals prices

“The US election has further complicated the outlook for the complex with a threat of tariffs on Chinese goods looming over the market. Industrial metals all fell after Trump on Monday denied a report that his team was planning weaker import tariffs than those announced during his presidential campaign. We believe that potential US tariffs and a stronger dollar could further depress industrial metals prices.”

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Gold

Downside Momentum likely to Accelerate Gold Below $2600

Gold Outlook: “The momentum break experienced on election day typically marks the end of such moves. But if that is the case, what can we expect from here? The melt-up has created a notable margin of safety for macro fund positions, which now hold significant paper profits on their extremely bloated length. Large scale selling activity from CTAs will only kick off below $2600/oz.”

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