Silver Price Forecast: XAG/USD retreats towards $21.50 to justify options market pessimism
|Silver (XAG/USD) prices consolidate the biggest daily gain in over a week by refreshing the intraday low with $21.77 during Thursday’s Asian session. In doing so, the bright metal justifies the bearish bias of the options traders, as per the latest Risk Reversal (RR) data from Reuters.
One-month silver RR, the spread between calls and puts, prints the biggest weekly fall in three with the latest -0.270 figures, per Reuters options market figures. It’s worth noting that the daily RR figures also remain downbeat for the second consecutive day and favor bears with -0.010 numbers. Furthermore, the XAG/USD RR dropped during the last two months and praised bears, the latest data for May month portray a -1.135 number.
In addition to the RR, risk-off mood and firmer US dollar also weighed on silver prices ahead of the key US ADP Employment Change for May, expected 300K versus 247K prior.
Also read: Silver Price Forecast: XAG/USD bounces off weekly lows and aims to re-test the $22.00 figure
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