Silver Momentum Builds as Central Banks and Speculators Ramp Up Positions
LONDON (August 27) The XAG/USD pair is in an uptrend. After a "technical stop" around the 37.00 level, the price accelerated to 38.42, where it’s currently trading. And take note: the chart still shows room for more momentum, especially with the push from fundamentals.
And here’s the bombshell: according to an SEC filing, the Saudi Central Bank has decided to venture into the precious metals market by purchasing 932,000 shares of silver ETFs, totaling $30.57 million. Of this package, 203,700 shares are in Global X Silver Miners, valued at $9.8 million.
The curious part is that they didn’t go for gold (the gold/silver price ratio is at 1:94), nor did they buy physical silver—they chose ETFs, which have higher volatility. In other words: they bet on controlled risk and liquidity, not on metal stored in a vault.
The Speculative Side
The scene is also heating up in the speculative arena:
According to the CFTC, long contracts reached 44,700, compared to the average of 25,000.
The trading volume of silver futures on the CME exploded, reaching 109,000 contracts on August 26, well above the average of 68,000.
Positions in options, used both for hedging and to capitalize on volatility, remain firm at 13,000 contracts, also above the average of 9,000.
Support and Resistance
On the daily chart, the price remains within the ascending channel, bounded between 41.00 and 37.00.
Key levels:
- Resistance: 39.20 and 41.00
- Support: 37.50 and 35.40
The XAG/USD pair is in an uptrend. After a "technical stop" around the 37.00 level, the price accelerated to 38.42, where it’s currently trading. And take note: the chart still shows room for more momentum, especially with the push from fundamentals.
And here’s the bombshell: according to an SEC filing, the Saudi Central Bank has decided to venture into the precious metals market by purchasing 932,000 shares of silver ETFs, totaling $30.57 million. Of this package, 203,700 shares are in Global X Silver Miners, valued at $9.8 million.
The curious part is that they didn’t go for gold (the gold/silver price ratio is at 1:94), nor did they buy physical silver—they chose ETFs, which have higher volatility. In other words: they bet on controlled risk and liquidity, not on metal stored in a vault.
The Speculative Side
The scene is also heating up in the speculative arena:
According to the CFTC, long contracts reached 44,700, compared to the average of 25,000.
The trading volume of silver futures on the CME exploded, reaching 109,000 contracts on August 26, well above the average of 68,000.
Positions in options, used both for hedging and to capitalize on volatility, remain firm at 13,000 contracts, also above the average of 9,000.
Support and Resistance
On the daily chart, the price remains within the ascending channel, bounded between 41.00 and 37.00.
Key levels:
- Resistance: 39.20 and 41.00
- Support: 37.50 and 35.40
Investing.com
