Commodities and Futures News

Silver seen at $30/oz over next 6-12 months – Citi

2023.05.23 13:37


© Reuters.

Investing.com — could hit $30 per ounce highs over the next six months to a year, with imminent support seen from buyers eyeing value in the metal after its sharpest price slide in a month since February, Citigroup says.

“We think recent price weakness offers a strong dip-buying opportunity, reiterating our call for $30/oz silver over the next 6-12 months as U.S. growth rolls over, even if emerging markets growth stagnates,” Citi’s analysts said.

Benchmark on New York’s Comex hovered at above mid-$23 levels in Tuesday’s trade, down almost 7% for May after cumulative gains of 20% over the past two months that took the metal above $26 at one point. 

“We expect silver would rally in anticipation of the fall in U.S. interest rates and real yields that will likely accompany an anticipated rollover in U.S. growth in Q4’22 or early 2024,” Citi’s analysts said. “This should weigh on the dollar, with Citi economists expecting  and the to weaken further (DXY to 96).”

With some market punters seeing the cutting interest rates by as early as September — despite the central bank’s more hawkish officials advocating tighter monetary policy for the foreseeable future — silver looked fundamentally poised for better returns, Citi’s analysts said.

“This should all underpin ETF demand for silver,” the analysts said, referring to exchange-traded products linked to the commodity. “Weaker competition for investment capital from other asset classes should also support silver pricing as markets increasingly price U.S. recession risks.”

Citi’s analysts also cited potential silver demand from China from the second half of this year.

“Our economists expect China to continue to gradually recover and any associated rebound in EM growth sentiment could be an incremental tailwind for silver — Emerging markets demand for silver has been weak with China and India destocking.” 

“We expect China demand could recover in 2H 23 following further easing measures by the PBoC.”

“China is a price-sensitive market which may continue destocking amid higher prices in 2023. China’s sluggish economic recovery has hit silver demand, with local premiums falling to 0.3% in April. Further easing measures to boost China’s economy could translate to stronger silver demand in 2H’23.”

India was another promising market, the Citi note said.

“India is a price-sensitive market which may continue destocking amid higher prices in 2023,” the analysts said.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 105,003.13 0.63%
ethereum
Ethereum (ETH) $ 3,330.22 1.21%
xrp
XRP (XRP) $ 3.14 1.21%
tether
Tether (USDT) $ 1.00 0.00%
solana
Solana (SOL) $ 256.29 2.80%
bnb
BNB (BNB) $ 688.10 0.85%
dogecoin
Dogecoin (DOGE) $ 0.353499 1.39%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.990143 1.42%
staked-ether
Lido Staked Ether (STETH) $ 3,324.66 1.08%
tron
TRON (TRX) $ 0.252231 1.21%
chainlink
Chainlink (LINK) $ 25.68 3.10%
avalanche-2
Avalanche (AVAX) $ 37.47 6.12%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,968.65 1.29%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 104,811.08 0.51%
hedera-hashgraph
Hedera (HBAR) $ 0.343788 3.88%
stellar
Stellar (XLM) $ 0.423255 1.05%
the-open-network
Toncoin (TON) $ 5.06 0.47%
sui
Sui (SUI) $ 4.15 0.18%
shiba-inu
Shiba Inu (SHIB) $ 0.00002 0.60%
weth
WETH (WETH) $ 3,329.98 1.13%
polkadot
Polkadot (DOT) $ 6.34 0.79%
litecoin
Litecoin (LTC) $ 124.82 3.36%
bitget-token
Bitget Token (BGB) $ 7.53 2.50%
leo-token
LEO Token (LEO) $ 9.78 0.02%
bitcoin-cash
Bitcoin Cash (BCH) $ 439.94 1.04%
hyperliquid
Hyperliquid (HYPE) $ 23.69 6.13%
uniswap
Uniswap (UNI) $ 12.11 0.45%
usds
USDS (USDS) $ 0.999357 0.21%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,520.64 1.09%
pepe
Pepe (PEPE) $ 0.000015 0.31%
official-trump
Official Trump (TRUMP) $ 30.65 11.13%
near
NEAR Protocol (NEAR) $ 5.09 4.03%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.01%
aave
Aave (AAVE) $ 328.50 1.01%
aptos
Aptos (APT) $ 8.27 2.21%
ondo-finance
Ondo (ONDO) $ 1.43 0.15%
mantra-dao
MANTRA (OM) $ 4.62 33.36%
internet-computer
Internet Computer (ICP) $ 9.21 2.12%
monero
Monero (XMR) $ 222.43 1.04%
whitebit
WhiteBIT Coin (WBT) $ 28.41 0.22%
ethereum-classic
Ethereum Classic (ETC) $ 26.91 0.59%
mantle
Mantle (MNT) $ 1.19 1.41%
vechain
VeChain (VET) $ 0.047972 0.25%
crypto-com-chain
Cronos (CRO) $ 0.13769 0.00%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.438837 1.79%
render-token
Render (RENDER) $ 7.10 4.47%
dai
Dai (DAI) $ 1.00 0.02%
algorand
Algorand (ALGO) $ 0.410299 2.94%
bittensor
Bittensor (TAO) $ 416.33 13.59%