(Kitco News) Silver costs are beginning to catch-up to gold as investor curiosity is coming again to the valuable steel, stated Kitco Metals world buying and selling director Peter Hug.
“Traders are beginning to see worth in silver,” Hug instructed Kitco information this week.
Hug stated that he expects silver to maintain rising to $19 with out gold needing to do a lot.
“It has been lagging. However when gold broke via $1,578 and [hit] $1,607, that was a rise of roughly 3%; silver went up about 5%. Silver is beginning to catch-up,” he stated. “I can see silver inching as much as $19 with out gold doing an excessive amount of from right here.”
On the time of writing, March Comex silver futures have been buying and selling at $18.35, up 0.21% on the day.
Traders see alternative at these worth ranges as a medium-to-longer time period play, Hug added.
“We’re beginning to see some investor curiosity in silver, which was absent available in the market previously three months. There was just about nobody inserted in shopping for bodily silver. That’s beginning to change. We’re doing 50% extra quantity in silver over the previous two weeks than we’ve accomplished the final two months,” he described.
Gold’s rally this week to above $1,600 an oz needs to be defined as a worry commerce primarily based on the way it has been buying and selling in mild of rallying U.S. equities and stronger U.S. greenback, Hug stated.
“In the event you have a look at the markets, the U.S. greenback is strengthening in opposition to each the euro and the yen … The greenback transfer was in all probability additionally a safe-haven commerce as folks transfer into the greenback and the U.S. fairness market. Underneath regular market situations, that might be a headwind for the valuable metals, particularly gold. And the truth that gold is now north of $1,600 … is a sign that there’s nonetheless a number of nervousness on this market and persons are placing gold and silver into their portfolios as a hedge in opposition to an financial slowdown attributable to the coronavirus,” Hug defined.
Disclaimer: The views expressed on this article are these of the writer and will not replicate these of Kitco Metals Inc. The writer has made each effort to make sure accuracy of data supplied; nonetheless, neither Kitco Metals Inc. nor the writer can assure such accuracy. This text is strictly for informational functions solely. It isn’t a solicitation to make any alternate in commodities, securities or different monetary devices. Kitco Metals Inc. and the writer of this text don’t settle for culpability for losses and/ or damages arising from the usage of this publication.