Silver Has Started Its Expected Strong Upside Move

Let’s start by looking at silver’s spot price in euro: Silver has obviously developed a reverse head-and-shoulder pattern which has been finalized all the way to its baseline. On the daily chart above we see that the first strong bullish move in silver corresponded to the first leg of the stock market decline in October. The December bullish move also corresponded to a very strong decline in stock markets over the world. Therefore there has been a transfer of capital flows from the stock market toward the precious metals... but also toward Treasury bonds, which is another matter. An Explosion Of Carry Trades When trading resumed on FOREX following the year-end pause, an extremely rare event occurred: there was an 8% move on currencies, which had not been seen since 2009, according to Reuters. The principle of the carry trade is to borrow in a country with the lowest interest rates – namely, the yen at the Bank of Japan –...

from GoldBroker.com https://www.goldbroker.com/news/silver-has-started-its-expected-strong-upside-move-1459