Investor demand for silver has been stronger as well, with silver exchange-traded fund (ETF) holdings having seen a sharp rise since March. Jeffrey Halley, senior market analyst at Oanda, believes that silver prices have the potential to move beyond US$30 per oz this month and that the gold-silver ratio will provide clues to the outlook for silver prices. If silver is not overbought, quid pro quo the ratio can go lower, further boosting silver prices,” he explains. Over the past few months, the increase in silver prices has been driven by low bond yields and aggressive global monetary easing. “What we are looking at right now are people making correlations to the high silver prices in 2011.

Source: The Edge Markets August 17, 2020 03:33 UTC