Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
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Silver quietly pushed into record high territory this morning. The white metal has seen serious buying pressure since Monday and is already up 8% this week. Silver broke through $54 per ounce early in the Asian session this morning, coming close to its mid-October highs. The move comes as silver stockpiles in Shanghai hit their lowest levels in a decade, with large volumes being shipped to the London vaults, which have also experienced tightening supplies in recent months. Chinese inventories were low enough to provoke backwardation conditions, whereby the current spot price of silver rose above those quoted in futures markets – a highly unusual situation. Silver is in high demand worldwide, from speculators and industry alike, and suppliers are struggling to keep up.
The rise in silver has been matched by platinum this week, which breezed past $1,600 an ounce yesterday and is up 8% since Monday. While gold has also performed well over the past few days, the precious metal has lagged behind other metals, unable to break through $4,200 as of yet.
Oil prices are heading for their fourth straight monthly loss, with Brent Crude hovering around $63 and WTI now down to $59 a barrel. Since April, OPEC+ has continued to increase its combined output capacity, which has been the main culprit in subduing crude prices. Although the organisation is expected to pause such increases until next year, another factor may soon come into play. The ongoing conflict in Ukraine may finally be showing signs of winding down, as Russian President Vladimir Putin recently signalled a willingness to discuss a proposal put forward by the United States. Should the conflict reach some kind of resolution, it is likely that sanctions against the Russian economy may be lifted, in which case Russian oil and gas will once again flow into global markets. The added supply could potentially crush crude prices even further, although it is unclear just how effective the sanctions were to begin with. On the other hand, winter is just around the corner, further complicating supply and demand dynamics.
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