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Silver diverges from gold; unlikely to reach new record highs without Fed's support
Silver has been diverging with gold recently as it’s been rallying steadily since last week. They are generally correlated but can decouple sometimes. Silver is also much more volatile, so it might just be exacerbating the boost from falling real yields. The fundamentals haven’t changed. We still have the US and Iran in a deadlock. We still have high inflation and oil prices. And we still have the Fed slowly turning more hawkish. Traders will need to focus on the Fed going forward as new all-time highs are unlikely to come without an easing bias from the central bank. If nothing changes before the June meeting, ... (full story)