Is Silver Set for a Strong Summer?

Is Silver Set for a Strong Summer?
Silver and gold typically have a strong seasonal pattern around the summer months of July and August. This is in part due to jewelry stock purchases ahead of Christmas and buyers for the Indian wedding season. One of the key drivers for precious metals remains the path of the USD and real yields, but the strong summer seasonal pattern is worth being aware of. In particular, there is a strong seasonal pattern around the second half of August.
Over the last 15 years between August 18 and September 03, silver has gained a total of 9 times and lost value 6 times The largest gain was +16.57% and the largest fall was -4.22%. The average return has been 4.30%.
Will silver gain again during this period?
Major Trade Risks: The main risk would come from risk-off trading boosting USD demand and inflationary fears pricing in higher yields.
HYCM clients can access the Seasonax product in order to analyse over 25,000 currency pairs, indices, commodities, as well as individual stocks. Please contact your account manager for a free trial. Certain products & services mentioned herein may or may not be available to all clients depending on which HYCM Capital Markets Group entity their trading account(s) adheres to.
About: HYCM is the global brand name of HYCM Capital Markets (UK) Limited, HYCM (Europe) Ltd, HYCM Capital Markets (DIFC) Ltd and HYCM Limited, all individual entities under HYCM Capital Markets Group, a global corporation operating in Asia, Europe, and the Middle East.
High-Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.
20220720