Silver marches on, shakes-off the supply and takes back territories in the 27 level

• Silver stabilises as a precious metals favourite while the greenback stumbles onto the back foot.
• Geopolitics and the FOMC's concerns about economic recovery playing into the hands of other safe havens, besides the US dollar.

The price of silver is trading $27.0633 and up on the day by 1.3%. The move from a low of $26.60 59 to $27.4601 can be mostly attributed to Thursday'sLondon/ New York session handover's weakness in the US dollar.

There is broad soft dollar tone on Thursday following yesterday's recovery against the G10 FX framework with the DXY posting its largest single-day gain since June. 

At the time of writing the DXY is trading at 92.83, down 0.18% from a high of 93.24 to a low of 92.75.

The Federal Open Market Committee minutes were slightly less dovish than anticipated owing to there being a reluctance to control the curve for which markets took as a green light to continue to buy back the US dollar.

However, the sell-off in USTs was short-lived and following a fresh corrective high during the London and New York crossover the greenback finds itself back under pressure.

The market continues to expect easing steps in its September meeting as the FOMC Minutes showed that members continued to stress significant economic uncertainty and downside risks due to COVID-19 for which only further stimulus could resolve.

Iran risks thrown into the mix

Meanwhile, from a geopolitical standpoint, Iran has come back to the fore as a risk-off theme which potentially supports safe-haven asset classes, such as precious metals. 

In the latest developments following the US announcing its intentions to restore full sanctions on Iran, Russia has rejected the plan, saying only a country that remains in the 2015 Iran nuclear deal can trigger the return of the sanctions in a process known informally as "snapback."

"We will not take it as snapback," Russian UN Ambassador Vassily Nebenzia told reporters, rejecting US Secretary of State Mike Pompeo's expected announcement.

"He’s not triggering a snapback. Snapback can be triggered by a country that is a participant of the JCPOA, which the US is not," he said, referring to the Iran nuclear deal by its formal name, the Joint Comprehensive Plan of Action (JCPOA).  

Silver, a precious metals favourite

Meanwhile, silver remains a precious metals favourite.

Analysts at TD securities explained that it has a clean positioning slate, and with there being rising industrial demand, spectacular investment demand and inventory constraints that should maintain momentum to the upside, in this context, ''the additional negative gamma created by a surge in levered ETF flows in silver continues to add some fat to silver's right tail.''

Silver levels