Reddit boosts silver, bitcoin falls

Silver caught up in Reddit rebellion

Reddit, the social platform that has become front-page news, has sent silver prices to an 8-year high. The precious metals market is the latest target of the Reddit rebellion, with silver seeing prices soar following a sudden influx of interest from the retail community. The reaction is not as extreme as they’ll have become accustomed to and I wonder whether they’ll therefore move on quickly but for now, they’re pretty large moves by silver’s standards. The metal is up over 7 per cent on Monday, and briefly punched past the $30 level earlier in the day.

Gold piggybacks on silver’s gains

Gold is again not getting the full benefit but is seeing some rise by association, up around 1% on the day. This is despite the dollar making small gains and real yields edging higher. It’s not yet been enough for the yellow metal to break USD1,875 and even if it does, the trend in recent weeks has been very cautious. It may take a break of USD1,900 to take off again.

Elon losing his touch as bitcoin pares gains

Bitcoin has pulled back quite considerably from its Elon-inspired surge late last week. I was convinced that would mark the end of USD30,000 as a support under threat, at least for the foreseeable, but as ever with bitcoin, it doesn’t take long for the situation to go a full 180. It’s quite the corrective move and may once again make bitcoin bulls a little nervous, should USD30,000 come under threat once again.

It will also be interesting to see whether the space gets caught up in the Reddit storm in the coming weeks. Although given price action in cryptos, would anyone even notice?

For a look at all of today’s economic events, check out our economic calendar.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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