Talk of a new stimulus package has been brewing for months in the US, where US House Speaker Pelosi and Treasury Secretary Mnuchin are reportedly continuing negotiations on a possible package to be voted on prior to the November 3rd presidential election.
This news along with reports from AstraZeneca preparing to resume its Covid-19 vaccine trials is providing increased risk sentiment in equity markets and helping US 10 year bonds rise higher through the 0.80 level. This scenario has weakened the US dollar and has supported gold and silver prices.
The main risks to the current situation are a breakdown of stimulus talks in the US.
As such, there may be buying opportunities on silver – check out the Market Mood video for details.
by Giles Coghlan, Chief Currency Analyst, HYCM