September Silver EFP Has Widened, as Silver and Gold Close The Day With Higher Prices
Gold trades higher at above $4,100 per ounce on Thursday (July 2) by the time of NYSE close. At the same time, silver trades above $60. The recovering prices of precious metals are welcomed by traders as the September Silver Exchange of Futures for Physical (EFP) has widened.
The spread of the September Silver EFP has stretched out to roughly 50¢, or around 4.95% in London over-the-counter market. This hints that the market could be starting to analyze the odds of tariffs hitting on fine silvers.
About 283,000,000 ounces of silver have flowed into warehouses that belong to CME. On top of that, lease rates in London over the counter market shot up toward 30% on two to three-month tenors, and the pool of readily available silver in London is said to have shrunk to about 150 million ounces, which leaves the physical silver market noticeably strained.
While this doesn't really guarantee anything, but the silver EFP ranks among the best live readings of the friction between the physical and futures sides of the metals market. Should tariff fears keep mounting, this is a number people should be tracking more religiously. It has the potential to spark silver's next big move.
Keep an eye on the EFP, which has been proven to be a reliable indicator. The fact that gold and silver have been recovering recently may tell a new chapter in their next move.
Related assets: Gold, Silver, Palladium, Platinum