Silver markets face normalization – TDS
After a record wave of free-floating Silver flooded London vaults, prices are set to retreat, with speculation and cooling Indian demand likely driving Silver back toward $40/oz, TDS' Senior Commodity Strategist Daniel Ghali notes.

After a record wave of free-floating Silver flooded London vaults, prices are set to retreat, with speculation and cooling Indian demand likely driving Silver back toward $40/oz, TDS' Senior Commodity Strategist Daniel Ghali notes.

Indian demand cools after RBI intervention

"Silver markets are normalizing, reflecting the single largest wave of free-floating metal hitting London vaults since the inception of this dataset. Silver markets no longer necessitate rising and elevated prices in order to incentivize metal to replete London vaults from unconventional sources. Even so, Indian demand is also subsiding following the RBI's intervention."

"Ultimately, spot prices will struggle to recapture the critical $50/oz mark, the failed breakout can now catalyze large-scale outflows from speculators. We think Silver can now trade back to $40/oz in precisely the same state of the world, likely catalyzed by an unwind of positions following a climaxing speculative fervor."

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XAUUSD
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