coininvest.com

  • Shop
    • Privacy-Policy
    • Imprint
  • Archive
    • Favorites
  • German Blog
  • French Blog
  • Italian Blog
  • Charts
You are here: Home / Markets / Weekly markets round-up for Coininvest
markets

2019-07-28 by Rhona O’Connell

Weekly markets round-up for Coininvest

Welcome to a very brief overview of the recent performance in the markets.  The essentials are captured in the table below and each week we will show a chart of interest.

Silver: the Cinderella metal

Silver’s strong rally, gaining 12% during a period of just three weeks, is testament to more than one factor.  First, that silver can be one of the most explosive metals in the sector, partly by virtue of its history of volatility; second, that it also has something of a history of languishing when gold is directionless and then delivers a powerful move extended and accelerated by technical considerations; and third, that this time the move has been driven almost exclusively by “hot” money. 

At a grass roots level, the market is a little cautious; there has been no sign of any buying based on the hopes that this move will continue, but equally there has been no real evidence of any re-selling.  Clearly retail buyers are awaiting some kind of confirmation that this move is a genuine one, as silver has flattered to deceive in the past.  At the professional level the net managed money positions on COMEX have swung away from a net short of 5,911 tonnes at end-May, the shortest position for six months; by 23rd July this had turned into a net long of 8,509 tonnes, with almost 7,000 tonnes of fresh longs and short-covering of more than 7,000 tonnes.  It does now look as if there has been some profit taking as the price has stabilised just below $16.50/ounce. Further, there have been record-breaking ETF purchases.

Meanwhile the market has absorbed the statements from the European Central Bank Chairman last Thursday which were not quite as dovish as had been expected; even so he does appear to be preparing the way for a rate cut in the autumn and possible further economic stimulus.  European bond yields are negative in the majority of countries and are continuing to slide lower.  In the United States the markets are awaiting the Statement from the Federal Open Market Committee on 31st July.  The fed fund futures are discounting an 81% probability of a 25-basis point rate cut this time especially as the U.S. GDP numbers were strong and Fed policy makers are widely believed to want to emphasise their independence from political influence, with the President pushing for more.  Gold may well have a short-term downward reaction if the cut is just 25 basis points, but the overall sentiment remains positive.

Thought for the week

Silver is Cinderella; she spends ages below stairs then comes to the party and all the heads turn (but beware losing that shoe…)

Chart for the week
Gold against U.S. 2-year and 10-year bond yields

Filed Under: Markets Tagged With: COMEX, ETF, FOMC, GDP, Gold, Precious Metals, Silver, US-Dollar

About Rhona O’Connell

Rhona O’Connell
Head of Market Analysis, EMEA and Asia regions
StoneX Group Inc.
www.stonex.com

Share this article by Email
  • Facebook
  • Instagram
  • Pinterest
  • Tumblr
  • Twitter
  • YouTube

Coininvest round-up Monday 23th January 2023

Coininvest round-up Monday 16th January 2023

Coininvest round-up Monday 9th January 2023

CoinInvest round-up Monday 19th December 2022

Coininvest round-up Tuesday 29th November 2022

Coininvest round-up Monday 14th November 2022

Copyright © · CoinInvest.com · Datenschutz · Impressum

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Reject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT