In Brief: UBS Reiterates to Buy Silver Dip

FX Trade Ideas

Last week we posted a breakdown of the UBS silver note calling for $38 in 2025. Yesterday, having considered that report for our own trading we put together some simple charts on if the UBS levels made sense. Bottom line there is, we like it, but want to see context in other markets if the selloff happens. Alerts have been set, commitments have not been made yet.

Today, we see in their weekly FX commentary for next week (attached below) a reiteration of that Silver call for their clients to get long in the $28.00 area. Could it be the last 2 days have been clients taking this to heart given the weakness in the GBP and also that the buying these past days ahs been out of the EU as well?

Hard to say, but the BGP is getting killed while Gold and Silver remain bid.

Notable in this analysis, UBS is not bearish the USD either. This may all be masking the Bank seeing EU physical Silver demand below the market which would be very consistent with US market behavior (1,000 ounce bar premiums are up while coin premiums are down) for physical upticking

This is getting interesting…

USD: Selling the downside in silver below 28.0.