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  • Silver is some 27% higher this year, extending a remarkable recovery.
  • Risks to global growth continue to mount, bulls eye 20 handle and beyond.

Silver has been making further tracks to the upside, extending its summer risk-off fuelled rally from the depths of the 14 handle, to shine in the realms of the high 19 handle. Currently, silver trades 1.12% higher on the day having travelled from a low of 19.18 to a high of 19.58.

Silver is some 27% higher this year, extending a remarkable recovery from the double bottom lows of 2015 and 2018 in the 13 handle. The metal was a little late to the party, but is certainly making up for it in recent weeks, with the gold to silver ratio now down to test the 23.6% Fibonacci retracement of the 2011 – 2019 range where 1 ounce of gold buys you 79.69 ounces of silver whereas, at the start of this year, gold would buy you over 93 ounces of silver.  

Hong Kong risks come to the fore

There are a number of drivers in the precious metals market stemming from a risk-off atmosphere, but in more recent trade,  the formal withdrawal of the extradition bill in Hong Kong is catalyzing a sharp risk-on move which is sapping fear out of global markets, as money managers see fewer event risks from Brexit and Hong Kong.  

“While protest leaders suggest that the city’s five demands have not been met, the bill withdrawal could potentially see tensions simmer. Considering that positioning is aggressively skewed long, fewer event risks could see gold consolidate ahead of the various central bank meetings in September, despite its still-attractive luster,” analysts at TD Securities explained.  

Silver levels