Powell's Speech Tonight: Silver's Bullish Momentum Strengthening?
Global silver prices strengthened in today's trading, supported by a combination of solid fundamental and technical factors. Gold's record-high rally has rekindled investor interest in silver, while strengthening safe-haven sentiment amid global geopolitical uncertainty.
According to a report from FxStreet, silver recorded a strong rebound to around US$38.00/oz after previously hitting a two-week low. This occurred in line with the decline in the US dollar, triggered by political pressure on the Federal Reserve and market expectations for future monetary easing.
Furthermore, although the FOMC minutes indicated caution in lowering interest rates, expectations for a rate cut remain growing—creating positive momentum for non-yielding assets like silver. This sentiment is also supported by solid industrial demand and a persistent global supply deficit.
From a technical perspective, silver is showing Strong Buy signals across almost all indicators, from Moving Averages, RSI, to MACD. The daily pivot point is around US$38,093, with key resistance levels at US$38.20–38.25. Analysts believe that a break above this resistance level will open more room for the bullish trend to continue.
Meanwhile, industrial demand—particularly from the electronics and solar energy sectors—remains a key factor supporting prices. Although there are projections of a slight weakening in industrial demand in 2025, analysts expect the sector to recover in the following year.
With the combination of a supply deficit, support from the gold rally, and still-strong technical momentum, silver has the potential to continue its rally in the near term if it can break through the resistance area currently being tested.
Source: Newsmaker.id
