Silver rally stops TD Securities out of tactical short | Kitco News My Comment: HiHo Silver!!!
Excerpt:
TD Securities announced Thursday that it was stopped out of its tactical short silver position. The bank said it is booking a 14% loss after "an epic positioning squeeze contributed to a +25% rally from the October lows."
TD Securities was short silver as they expected rising U.S. interest rates combined with the growing threat of a recession would significantly weigh on the precious metal.
"Commodity demand signals still argue against the recent rally, but significant CTA short covering has sufficiently extended the pain trade in gold to lift silver prices above our stop," said Daniel Ghali, senior commodity strategist at TDS, in the updated note. "We continue to expect the investment appetite for precious metals to remain subdued in the midst of a restrictive rates regime, which suggests that a consolidation in prices could still be in the cards into 2023."
Silver's rally has significantly outperformed gold, with the gold/silver ratio falling to its lowest level since late March, last trading around 77.65 points.