“Silver’s impressive rally, which pushed prices up by more than 40% since the beginning of the year, seems to have come to an end. Over the past couple of days, prices failed to hold above USD 20 per ounce, dropping 2.6% yesterday and closing at USD 19.4 per ounce. We see more downside for prices going forward. Support from the gold market should fade, the US dollar should strengthen and futures market tailwinds should turn into headwinds once short-term speculative traders decide to take profits on their excessive long positions. We expect silver prices to fall towards USD 17 per ounce on a one to three-month horizon and recommend taking a short-position in December 2016 silver futures. Beyond this short-term correction, prices should continue to move lower over the medium to longer term as the silver market should remain oversupplied against the backdrop of struggling industrial demand, sluggish jewellery demand and receding investment demand”, believes Carsten Menke, Commodities Research Analyst, Julius Baer.
Source: Finmarket finmarket.ru