Behind Silver's Calm, Is There Potential for an Explosion?
Silver prices are currently trending in the same direction as gold, supported by expectations that the Federal Reserve will cut interest rates in the coming months. The prospect of lower interest rates typically benefits precious metals by suppressing bond yields and making non-interest-bearing assets like silver relatively more attractive. Furthermore, the recent weakening of the US dollar has also helped silver prices remain at relatively high levels, as this metal is traded in dollar denominations.
From a fundamental perspective, silver has two main drivers: as a precious metal (a safe haven, an inflation hedge) and as an industrial metal, particularly for solar panels, electronics, and electric vehicles. Demand for green energy and technology remains the medium- to long-term story supporting silver's outlook, although in the short term, its price remains sensitive to global economic data and risk sentiment. This means that if economic data weakens but expectations of stimulus and interest rate cuts strengthen, silver has the potential to remain attractive to both short-term traders and investors seeking portfolio diversification.
The price of silver at the time of this analysis was released was $54,052
- Buy if the price moves within $54,352
- Sell if the price moves within $53,752
Resistance 2: $54,952
Resistance 1: $54,652
Support 1: $53,452
Support 2: $53,152
Disclaimer
This article is analytical in nature and does not constitute a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
