The rise in the XAU/XAG ratio reflects idiosyncratic strength in Gold, as opposed to weakness in Silver, TDS' Senior Commodity Strategist Daniel Ghali notes.
"We are in the final months of the silversqueeze end-game. The last time Silver prices sustainably broke $35/oz, it took less than 6 weeks for prices to flirt with $50/oz."
"Lease rates continue to rise north of 5%, discretionary traders remain underpositioned, and Silver markets are still in a structural deficit — it's only a matter of time until the next buying impulse hits. In the current context in which liquidity is critically scarce, we expect the end-game to result in substantial upside convexity in flat prices."