Commodities: Silver
In a nutshell we remain bullish precious metals still believing silver can test / break its Reddit inspired panic rally in early February, gold unfortunately is dragging the chain and might struggle to breach $US2000/oz but such a move should reignite the sector:
Silver: We talked about this in the AM note today calling it a sell into strength. We have a position in the Global Macro ETF portfolio (ETPMAG) however yesterday’s strength did not follow through today. This remains on MM’s radar as a sell nearer $40.
As we said earlier silver soared almost 10% yesterday making new highs since 2013 as the “Reddit army” found a new target. A strange choice in our opinion as silvers carrying a relatively small short position with most banks actually advocating their clients to be long.
