- The Chinese Start Buying Silver: BofA Says “Momentum Breaks Out To Highest In Years”
by Tyler Durden, www.zerohedge.com
While most traders’ attention has been glued to the daily gyrations in oil, it is another commodity that has gained 21% this year and is the best performing asset in the Bloomberg Commodity Index. Silver.
As we reported earlier, the buying accelerated this morning, when ongoing demand for the precious metal pushed it to fresh 10 month highs above $17/ounce. One reason suggested for the buying came from Reuters, which said “that there is heavy buying in silver in Shanghai, and that has triggered buying in gold as well,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
This may just be the beginning as technicians are finally starting to pay attention. Here is the just released report from BofA technical strategist Paul Ciana, who highlights the key chart observations: