Howy, I agree with the institutions side which are hurrying to get some ETF metals exposure.
In how much the ETF would influence the metals price, I don't know. Currently the amount of silver in the ETF is some 1.2% of the combined Comex stocks. Adding 15 mio oz in the ETF would make this 2.4%.
Not even speaking of what is warehoused in London.
Now, market prices the metals on headlines and rumors. So, even if the ETF reserved stock is small, the sentiment side of buying can kick in.
However, there are other factors:
lately, traders were reluctant to be naked silver over the week-end,
the 12.7 price level is a pivotal point at which the TA signals cycle to buy and sell. There has to be a significant move, up or down.
Labour Day is a holliday in many European coutries, most trading desks will be closed. And these also do not like to be naked silver, especially before a long week-end.
swissie and euro gained 1% again today, Dollar is down: to stop first at 84 or is the taget 62?
These are many factors, ETF only is one of them.
My 2 cents. |
