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American banks hold large positions in silver

3/1/2023 12:39 PM

The XAG/USD pair continues the local corrective trend around 21.08, which is more dependent on the dynamics of the American dollar. Thus, the USD Index dropped below 105.000 again.

In turn, long-term factors still signal in favor of the investment attractiveness of the asset. American banks continue to hold positions in silver ETFs, according to the latest quarterly Form 13F filings with the US Securities and Exchange Commission (SEC). For example, JPMorgan Chase & Co. as of Q4 2022, held a large equity put option in iShares Silver Trust (SLV), a leading silver ETF, valued at approximately 1 billion dollars. Given the fact that this option is included in the 13F statement, this position is active and will remain such through at least the first quarter of 2023. Also, in global investments, options of this type do not always mean a short position, and can be used as a hedge against faster opposite positions.

On the daily chart, the quotes remain within the global ascending channel with dynamic boundaries at 23.70–20.50, most likely preparing for the start of a reversal.

Technical indicators have not yet reacted to local growth, and keep a sell signal: the range of EMA fluctuations on the Alligator indicator is still wide and the AO histogram is forming new descending bars, being in the sales area.

Support levels: 20.60, 19.60. | Resistance levels: 21.50, 23.10.

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