Silver and Gold on the March - Forex News by FX Leaders
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Silver and Gold on the March

Posted Tuesday, February 23, 2021 by
Rowan Crosby • 1 min read

The metals markets have opened the week strongly and pushed higher on Monday.

Both GOLD and SILVER were higher in what I suspect is a sign of things to come. We did see a bit of upwards pressure on commodities across the board thanks to the falling USD. On the US Dollar Index, price fell back to 90.00, which basically means it has given up all of its recent gains.

This USD weakness is also likely to continue to put upward pressure on the metals markets going forward.

Gold recovered from what has been a pretty sharp sell-off and is now back above the $1,800 level.

While Silver broke above the $28 mark, for the first time since the mini-squeeze that took place a couple of weeks ago.

As I pointed out in the signals brief yesterday, I am very much bullish on both Gold and Silver at the moment. As it stands, there is a bit of a disconnect between the spot price and what you can actually purchase physical silver and gold for. What this suggests to me is that there is buying pressure. Of course, there should be a theoretical difference between the two, given the costs associated with barring and storing silver and gold. However, this difference appears to be growing.

I also believe the spot price of the precious metals is being held down artificially and should really be higher than where it is currently trading. If we start to see some more upward pressure, this could very quickly exaggerate the problem even further and lead to more of a squeeze. Similar to what we saw last time around.

For now, I remain bullish on both Gold and Silver and will be watching them closely.

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