US equities have been consolidating their strong ~10% bounce from August lows over the last eight sessions. With markets about to enter the often-tough September ahead of the uncertainties created by the November election, which Sportsbet has as a coin toss, we have tempered our market view to neutral, but we stress this is not a sell.
The US dollar rallied overnight and pushed silver down 2.8% overnight, but it still looks constructive with Fed rate cuts looming on the horizon. However, it’s unlikely to be a straight-line move with 8 rate cuts already priced into credit markets over the next year. Silvers is not a commodity with obvious stock exposure on the ASX, but if it were, we would be looking to “buy dips” the second time we’ve written that phrase in today’s report!
- We remain ultimately bullish silver in-line with our bearish call towards the $US.
