Silver price pops to 6-month high as retail traders looking for "short squeeze"
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(Kitco News) - Silver futures prices are trading sharply higher and gold is holding moderate gains in early Comex futures trading Sunday evening. Social media was lit up during the weekend, especially on Reddit, as a growing band of retail traders looked to slay another market-this time silver--that they claim is dominated and manipulated by the "big boys" on Wall Street. This follows the GameStock saga that played out last week, whereby the smaller retail traders put the squeeze on big hedge funds that had shorted the troubled business.
The silver market is a much bigger beast to take on than is a smaller individual stock. Still, the "Redditors" have put a scare into many on Wall Street, especially the big hedge funds that like to short stocks they feel will be in some trouble either at present or in the future.
While the gains in silver are certainly solid in early dealings Sunday evening, they are not the epic moonshot price advances that some social media sites were predicting during the weekend. However, the night and the trading week is still young, and much can happen even overnight. The U.S.
stock indexes are trading solidly lower in early "overnight" trading, which could prompt further safe-haven demand for gold and silver if losses in the stock indexes accelerate.
Importantly, thegold and silver markets had a bit of a tailwind behind them before the Redditor trade kicked in. Many veteran market watchers were already reckoning the "inflation trade" would boost raw commodity markets, including the metals, what with major central banks and governments pumping so much liquidity into financial systems in order to jumpstart major world economies that have been crippled by the Covid-19 pandemic.
This story has yet to fully play out. Stay tuned to Kitco News for the latest developments on the matter as it relates to the metals markets.
March silver was last up $2.01 at $28.915 and February gold was last up
$9.60 at $1,856.90.