Silver briefly traded above $50, creating higher volatility, wider spreads, pricing gaps, low liquidity, and higher overnight swap costs.
Silver briefly traded above 50 USD per ounce for the first time in history, reaching a milestone driven by strong demand and tight market conditions.
XAG/USD short positions currently carry a swap of -150.4317 per lot (one lot constitutes 5,000 contracts), up sharply from around -22.01. This surge in swap rates is due to extreme volatility and the increasing difficulty of securing funding for silver positions. Traders should note that swap rates may continue to fluctuate significantly and could remain outside normal ranges. Therefore, swap costs may increase significantly if positions are held overnight.
The scarcity of physical silver is adding further pressure. The Exchange for Physical (EFP) spread has widened notably over the past few days, signaling difficulties in sourcing physical silver.
What You Should Expect
Due to these market dynamics, traders may experience:
- Wider spreads
- Pricing gaps
- Lower liquidity
Please consider these factors when entering or adjusting positions, as the current environment is likely to produce ongoing volatility and unusual market behavior.
For more information or any questions, you can reach out to our support team via email at support@axiory.com, or via live chat on our website or in the Axiory portal.