Silver markets are still in a structural deficit – TDS

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.

Next buying impulse to hit the markets in the near term

"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."