Thursday, 12 May 2016

Silver lining




Lately the volatility of forex market is fading away and is drifting further everyday.
Trading is getting more difficult and unprofitable, as the ratio risk profit is worsening.
During 2016 we’ll witness a twist of risk appetite and all market participants will turn to safe-heaven assets, such as precious metals. Every cloud has a silver lining.
The reducing carbon emissions through renewable energy  should lead to increased demand for silver in related industries (eg use in solar cells). 
Yesterday silver benefited from the weaker US dollar and the uplifted gold and this pushed XAG/USD to 17.60, where was marked the intraday high. Afterwards a slight pull back was seen, but after all it’s just a matter of time before go higher, targeting 18.00 level. This area is a little bit frustrated, as recently resistance has checked in there. Once bulls conquer this level, it should be translated into markets as buy-and-hold pattern.

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