Chart Of The Day: Why Silver Will Fall Despite Rising Risk-Off Sentiment

  • Date: 20-Jul-2021
  • Source: Investing.com
  • Sector:Oil & Gas
  • Country:Middle East
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Chart Of The Day: Why Silver Will Fall Despite Rising Risk-Off Sentiment

Last week, we provided a on , saying that if spiking wasn’t a strong enough catalyst to push the precious metal higher, that's a bearish sign. Indeed, after that point, the yellow metal slumped, completing a bearish wedge, which has provided resistance to today's gold price.

Now we're focusing on , which, even as risk-off sentiment seems to be escalating, we expect will head lower. Blame it on the in Treasury buying, which strengthens the , the base currency in which the precious metal is denominated, making it more expensive.

We've noted in previous articles that the fact that gold alone was rising, within the wedge, while silver and were not, suggested that investors were not perhaps being driven by concerns of higher inflation, but rather more likely by the Delta variant as a risk factor to stocks.