DBP News and Press, Invesco DB Precious Metals Fund From 09/14/22

Summary Growing short interest in SLV reflects a retail and institutional demand to bet on lower silver prices in the months ahead, and it is almost always a good contrarian indicator. At some point, Large Speculators will be forced to buy back and cover short positions. Silve...

Summary The hot inflation reading for August was a narrative buster for many investors. What are the implications of Tuesday's report for stocks? What are the associated effects for bonds and gold? Well, I woke up Tuesday mornin’ It was supposed to be the late...

Summary Companies were hit by the combination of falling metals prices and rising costs - leading to earnings misses and cost revisions. Inflation is driven by excess demand and/or a lack of supply. The markets are more concerned with rising rates than they are about inflation...

Summary Gold is trading near the pivotal $1,700 level. A break below would complete a bearish topping pattern. More importantly, gold has served as a leading indicator for inflation. Gold broke out as early as June 2019, way ahead of the commodity complex. Gold's next big dire...

Summary Gold has rarely seen more shorts than longs over the past decade and is the only precious metal currently positioned net long (+22.29%). With a net 9.24% of open interest positioned short, that is the most pessimistic positioning reading since May 2019. As speculators ...

Summary The main economic data release for the trading week is the US inflation report. The UK economy is in a precarious position and facing a recession. Chinese President Xi is expected to meet with Russian President Putin at the Shanghai Cooperation Organisation summit in U...

Summary The Treasury added $341B of debt in August. This was the largest increase in debt since January and is more than 10 times larger than the increase in July. Another major occurrence was the increase in short-term debt. The Treasury increased Bills by $210B, the largest incr...

Summary Gold fell 2% in August, as higher yields and a stronger dollar continued to exert pressure. Managed money net positioning in gold turned positive during the month, while global gold ETF outflows of 51t (US$2.9bn) were lower than July’s. Gold could remain under p...

Summary Silver tends to rise faster in bull markets and fall more quickly in bear markets. The US dollar is extremely overbought and overdue for a significant downward correction, while silver is underpriced and oversold. The Fed policy responsible for both the strong dollar a...

Summary The prices of both gold and silver struggle as the Fed looks hawkish. The prices of the grey metal depend on the health of the global economy since silver is both a hedge against inflation and an industrial metal. It is likely the prices of silver will be under pressur...