Silver Gains Ground Against Gold – TDS

Silver prices have regained some ground against gold this month, likely reflecting its recent underperformance against gold, notes TDS macro analyst Daniel Ghali.

Silver fundamentals remain on an improving trajectory

“We expect CTA selling activity in the silver markets over the next few sessions to challenge money managers participating in the ‘catch-up’ trade.”

“Silver prices have regained ground against gold this month, in line with trends in improving commodity demand sentiment, supported by a combination of CTA buying activity and macro fund re-engagement in the white metal, likely relative to its relative performance recent low. to gold.”

“However, a low bar for a round of large-scale CTA selling activity could add pressure to the “recovery” trade in the near term, with short sellers likely to sell as much as -10% of their net long in silver, even in an uptape. Under the hood, Silver’s fundamentals have remained on an improving trajectory, with only a few speed bumps seen in our grand #silversqueeze thesis so far this year.