The precious metals are showing an extreme bullish stance, the one that ought to showcase its broad spectrum pace one way or another. This is exactly what Goldman Sachs strategies have predicted for the silver price, adding how the prices of silver may face extreme ups and downs, as volatility may sweep over the metal in coming months.
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Sharp Ups and Downs Expected In Silver’s Price: Goldman Sachs
Goldman Sachs, the leading banking giant, has sounded the alarm on rising silver prices. The banking firm shared how silver prices may experience sharp volatility ahead, with their prices swinging in both directions. However, the primary catalyst behind this volatility might be London, where global silver benchmarks are set. With the majority of the silver sitting in US vaults, London inventories have been left dry, which Goldman believes could bring in significant volatility ahead.
“Thinner inventories have created conditions for squeezes. Where rallies accelerate as investor flows absorb remaining metal in the London vaults. And reverse sharply when tightness eases,” wrote Goldman’s analysts (As reported by the Business Insider)
However, the experts claimed that the situation is not that dire. Goldman Sachs strategies noted how the silver price may pull back if the metal gets transferred back to London, all while ruling out the US tariff policy on silver.
“If silver follows the same pattern. Most silver may remain in New York COMEX vaults. And extreme price action could persist even after a definitive statement on US silver tariffs,” Goldman’s analysts wrote.
Silver’s Future Goal
Despite bearish silver price predictions and rising talks of consolidation, Rashad Hajiyev, a leading metal expert, believes silver may, one way or another, hit a new high mark of $96 in the near future.
“Once the sell-off in silver is over, I expect resolution to the upside towards my $96 target…”
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