After five consecutive months of gains, bulls trading XAG/USD were unable to maintain the momentum of the rally, which has persisted for much of this year. This comes after the Coronavirus pandemic wreaked havoc in the markets, resulting in an increase in the demand for Silver, Gold and other safe-haven assets.
Although the demand for Silver is largely attributed to its industrial uses, the inverse relationship between Silver and USD suggests that, much like its Gold counterpart, XAG/USD is becoming increasingly popular as both an inflationary hedge and a means of portfolio diversification, specifically during periods of economic uncertainty. With that being said, during these unprecedented times, both technical and fundamental factors may be additional drivers of price action for the foreseeable future. Read more…..
Chart of the Day
Amidst market pessimism, one expert sees gold prices climbing to record heights of $3000-$4000 an ounce in the future.