With that said, silver and the precious metals complex at large have continued their listless retracement decline, now in its third week. While silver especially is skating on very thin ice, we still like the sector's prospects as framed by the broader macro story.
Although silver may be standing with ginger footings, the ground beneath the US dollar as well as 10-year yields appear more fragile from our perspective. Moreover, the yen looks ripe to bounce. Considering these relationships and the fact that the VIX also appears on the precipice of another step higher in its long-term range, we still like the gilded hedge.
As in pond hockey, first one to fall through loses by default.
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