Silver stocks dip as metal falls ahead of Fed meeting

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27/07/2021 20:53

** Shares of silver mining stocks dip, tracking declines in
the metal's price  XAG=  
    ** Silver dips 1.8% to $24.72 per ounce, lagging gold ahead
of the U.S. Federal Reserve meeting where more direction on
monetary policy is expected 
    ** "A 50 bps rise in real rate expectations for the U.S.
10-year (Treasury note) is likely to come alongside a 20%
decline in the silver price," UBS Commodities Analyst Giovanni
Staunovo told the Reuters Global Markets Forum 
    ** U.S. listing of silver miner McEwen Mining  MUX.N  falls
3%, Coeur Mining  CDE.N  loses 1.9% 
    ** Staunovo expects silver to suffer more than gold into
next year partly due to a stronger U.S. dollar  .DXY  
    ** Staunovo notes over the last 25 years, silver has on
average fallen 2% in months when the USD strengthens
    ** iShares Silver Trust  SLV.N , a popular ETF for tracking
silver prices, dips 1.8% 
    ** Aberdeen Standard Physical Silver Shares ETF  SIVR.N 
loses 1.8%; ProShares Ultra Silver ETF  AGQ.P  falls 4% to
$40.89, its lowest level since March 
    ** "Selling pressure on silver should come from investors
trimming their ETF and futures positions, which would trigger
the next leg down in the price" - UBS' Staunovo 
    ** YTD, silver has fallen ~6.2%

 (Reporting by Aaron Saldanha and Lisa Mattackal)
 ((lisapauline.mattackal@thomsonreuters.com; +919945309224;
Twitter: https://twitter.com/LPM94))