Silver follows gold sell-off: -9%!

7:29 PM September 21, 2020

Silver is obviously the weakest commodity in the world, today. The price of this precious metal is down nearly 9%, following a huge decline on the gold market. Of course, decline on the silver market is higher than on gold which is associated with often bigger volatility on silver, especially in case of declines.

Bear market on precious metal market is caused by stronger dollar which was highly oversold by speculators. Currently the situation in changing and the dollar gains attention from investors. Short positions on the dollar and long position on other currencies versus the greenback are trimmed. We can observe that in March we had similar situation when the dollar appreciated due to demand on cash. This situation caused also a huge sell-off on precious metal market.The price is the lowest since mid-August and nearly 20% off the local top from previous month. Source: xStation5

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