A strong dip-buying opportunity

5.24.23 - A strong dip-buying opportunity

Gold last traded at $1,957 an ounce. Silver at $23.07 an ounce.

Silver seen at $30/oz over next 6-12 months - Citi - Yahoo! Finance

Investing.com -- Silver could hit $30 per ounce highs over the next six months to a year, with imminent support seen from buyers eyeing value in the metal after its sharpest price slide in a month since February, Citigroup says.

"We think recent price weakness offers a strong dip-buying opportunity, reiterating our call for $30/oz silver over the next 6-12 months as U.S. growth rolls over, even if emerging markets growth stagnates," Citi's analysts said.

Benchmark Silver futures on New York's Comex hovered at above mid-$23 levels in Tuesday's trade, down almost 7% for May after cumulative gains of 20% over the past two months that took the metal above $26 at one point.

"We expect silver would rally in anticipation of the fall in U.S. interest rates and real yields that will likely accompany an anticipated rollover in U.S. growth in Q4'22 or early 2024," Citi's analysts said. "This should weigh on the dollar, with Citi economists expecting U.S. rates and the dollar to weaken further (DXY to 96)."