Silver prices should recover, but not just yet suggests UBS

LONDON (July 29) Silver prices have been hit by a more cautious stance (risk-off) among investors generally, especially with gold coming under pressure.

UBS is still a fan of the metal, as it should be a beneficiary of lower interest rates though it might be affected by more bouts of jitters in markets.

“With our view of lower US rates and the US$ peaking, investors stay long the metal.

“As for volatility-selling strategies, we think the recent pullback in prices can be used to sell the price downside risks in silver from USD 26/oz over the next three months.

“In other words, we favour selling the price downside for yield pickup.”

Shares in silver miner Fresnillo PLC (LSE:FRES) were flat at 574p.

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