Hedging Appeal Keeps Silver at $47
This morning, during the Asian session, silver traded around $47/oz, remaining near a 14-year peak after breaking through $47 earlier in the week. The primary driver came from safe-haven demand following the official US government shutdown on October 1, triggering market caution. At the same time, the US dollar has tended to weaken and Treasury yields have eased slightly, lowering the opportunity cost of holding precious metals—a combination that benefits silver prices.
Fundamentally, the silver market is also supported by a supply-demand gap (deficit) projected to persist for a fifth consecutive year through 2025, with industrial demand—including solar energy—remaining at record highs.
This backdrop makes any price dips relatively quickly re-engage with market participants. Going forward, silver's direction will be largely influenced by the dollar's direction and the Fed's signals. If interest rate cut expectations strengthen, silver's support is likely to persist, but a rebound in the dollar/yield could dampen it. (Ads)
The silver price at the time of this analysis was released was $47.181
- Buy if the price moves within the $47.321 range
- Sell if the price moves within the $47.041 range
Resistance 2: $47.921
Resistance 1: $47.621
Support 1: $47.041
Support 2: $46.741
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
