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(Kitco News) – Silver futures are trading sharply higher and gold is seeing moderate gains in early Comex futures trading on Sunday evening. Social media was fired up over the weekend, particularly on Reddit, as a growing group of retail traders sought to kill another market – this time silver – which they claim is dominated and manipulated by the “big boys” of Wall Street. This follows the GameStock saga that unfolded last week, in which small retail traders put pressure on large hedge funds that had sold short the struggling company.
The silver market is a much bigger beast to contend with than a smaller individual stock. Still, the “Redditors” have scared off many people on Wall Street, especially big hedge funds who like to short stocks they think will be in trouble now or in the future.
While silver’s gains are certainly solid in early trades Sunday night, it’s not the epic moon price advances that some social media sites were predicting over the weekend. However, night and week trading are still young, and a lot can happen even overnight. United States
Stock indices are trading solidly lower at the start of “overnight” trading, which could lead to renewed safe-haven demand for gold and silver if stock index losses accelerate.
It is important to note that the gold and silver markets had some wind behind them before the Redditor trade went into effect. Many veteran market watchers already believed that “inflation trading” would boost commodity markets, including metals, with major central banks and governments. inject as much liquidity into the financial systems in order to revive the main world economies which have been paralyzed by the Covid-19 pandemic.
This story has not yet fully unfolded. Stay tuned to Kitco News for the latest developments on the matter as it relates to metals markets.
March silver last rose $2.01 to $28.915 and February gold last rose
$9.60 to $1,856.90.
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