Silver Holds Near Record High, Market Warns of Consolidation Phase
Global silver prices remain near record highs after a sharp rally in recent weeks. After surging tens of percent in a relatively short period, silver's movement today tends to be more subdued, with a narrow range of fluctuations. Market participants have begun taking short-term profits, but the broader trend remains bullish.
From a fundamental perspective, silver's recent gains are linked to expectations of interest rate cuts by the Federal Reserve. The prospect of lower interest rates in the future has led to lower real yields and re-increased the appeal of precious metals as a hedge. Concerns about a global economic slowdown have also prompted some investors to diversify their portfolios into gold and silver.
In addition to monetary factors, silver is also supported by strong industrial demand. Silver's use in solar panels, electronic devices, and even the electric vehicle industry maintains a positive medium- to long-term outlook. This combination of "safe haven" sentiment and industrial demand is what makes silver still attractive, despite its high price. However, the significantly elevated price position opens up room for a correction at any time if market sentiment changes.
Technically, the silver market remains bullish. The price movement pattern indicates that the previous rally has broken through a key resistance area and established a new price level at the upper end of the range. As long as the price remains above the key support area of $56.6, this bullish structure is considered intact. On the other hand, the area around the latest peak represents a strong resistance zone that could potentially trigger further profit-taking if it cannot be convincingly broken through.
In the short term, the silver market is likely to move in a consolidation pattern: prices fluctuate between support and resistance zones while awaiting new triggers from US economic data or central bank statements. A strengthening US dollar or rising bond yields could act as a pressure factor, while data supporting the monetary policy easing scenario would again fuel the uptrend. For market participants, the current phase requires increased vigilance given the persistently high volatility and relatively high price levels.
Source: Newsmaker.id
