Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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You should consider whether you can afford to take the high risk of losing your money.

The vast majority of retail client accounts lose money when trading CFDs.
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Where's Next for the Rally in Silver Prices?

The price of silver has mounted a strong rally in recent weeks to catch up with higher gold prices.

Both have paused due to the market remaining unsure of the Federal Reserve’s intentions.

XAG/USD – Weekly Chart

XAG/USD – Weekly Chart

Silver (XAGUSD) is pushing against a downtrend resistance line at the $24 level on the weekly chart. A move above there could open up a run to the 2021 highs around the $30 level.

Silver, like gold, had been weighed by the aggressive interest rate hikes of the Federal Reserve. As the central bank paused on the pace of its hikes, precious metals rallied. They have now cooled off once more as the Fed maintains a “higher for longer” stance.

Unexpected GDP numbers also took some steam away from metals as silver faced a 1.8% loss on Thursday. However, the trend continues to be higher, and the supply and demand picture should support silver further.

NS Ramaswamy, Head of Commodities, Ventura Securities, said, “The gold-silver ratio is currently at 78:1, and we could expect the regression to mean levels of 60, which is bullish for silver.”

Last Updated: 23/12/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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