Alongside gold gains, silver is also expected to increase [Video]
|Listen to the latest market mood for the XAG/USD.
The fundamental picture for gold to find buyers is well reported amongst market participants. However, alongside gold gains, silver is also expected to increase. Expectations of a low USD, low-interest rates, high levels of QE, and a Biden Presidency are all anticipated to be positive for both gold and silver.
This means that silver is also a potential medium-term buy with buyers expected on pullbacks to key support.
Trade Risks:
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The main risk to this trade is if President Trump finds a way to contest the US election as this should strengthen the dollar and weaken silver in the near term.
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If the Federal Reserve signals a surprise shift in rising rates this will invalidate this outlook.
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Any serious reason for USD strength will invalidate this outlook.
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