Peter McGuire flags silver as standout performer in volatile metals market

Synopsis

Peter McGuire discusses the potential impact of Trump's proposed tariffs on Russian energy, noting an initial dip in oil prices. While gold consolidates, silver is experiencing a surge, reaching 14-year highs. Investors are shifting focus to silver due to its potential and demand in renewable energy sectors, with a bullish outlook for continued growth.

"All of those factors rolling forward are going to be hard to digest for anyone to say I want to keep on doing business with Russia because the impact it is going to have naturally to their internal budgets and it is going to be very-very difficult to stomach," says Peter McGuire, CEO, Australia, Trading.com.

What kind of repercussion do you think Trump's comments have had on oil? Do you believe that this geopolitical situation that is brewing right now could have a further impact on oil prices and maybe we could see a slight bit more of cooling off?
Peter McGuire: Absolutely. I mean, you saw that overnight down 1-1.5%, I am noticing in trade now you are looking at just about 69 for Brent, 66-70 for WTI. The comments are fairly direct and there is no ambiguity with the message, that is what I am reading into it. I mean, he has got 50 days that Russia needs to come into line as far as this situation with Ukraine and they are looking at reaching a deal sometime by September and threatening 100% secondary tariffs on nations purchasing Russian crude and Russian energy.

So, all of those factors rolling forward are going to be hard to digest for anyone to say I want to keep on doing business with Russia because the impact it is going to have naturally to their internal budgets and it is going to be very-very difficult to stomach.

Amid this fresh tariff announcements and the fresh rates that Donald Trump is announcing every day, the safe haven demand rather the demand for gold is seen to be fading away. do you believe that for now the gold is something that is not catching the eyes of the investors right now and there could be some bit of a sell off from those higher levels?
Peter McGuire: I do not necessarily think a selloff. I feel as though it is in a consolidation phase and that 3300 to 3450 sort of handle, it will oscillate between those. The standout has been its little brother. It is absolutely on fire and we are at 14-year highs for silver I am referring to and it has outperformed gold and a lot of the smart money has jumped track and looking at little brother has probably more opportunity and that has been very much demonstrated in the last probably month or so, two months, we have been calling that one and the overall momentum keep an eye on $41 critical shortage as far as silver and do not forget the huge impact that it has to all forms of energy certainly photovoltaic, electric vehicle. So, gold, its best days are ahead of it. And silver, keep an eye on it now.

How do you think though silver is going to pan out after this knee-jerk move that we have seen in the last two days?
Peter McGuire: I feel as though the overall momentum what we saw on Comex on Friday was very-very strong, up, I think it is 6% up over that two trading days or more. And the overall theme seems to be one of gathering steam at the moment. There is a lot of demand out there. Investors are looking at it from a real standout as far as what is achievable.

So, we have got to be conscious of that and it has probably got the potential to take down that $42 handle out sometime over this quarter. I know we are only early into the phase of it, but the overall theme and momentum seems to be very bullish at the moment.

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