Silver Breaks 14-Year High, Bullish Momentum Continues
Silver prices surged this morning (September 2nd) to their highest level since 2011, trading at around US$40.60 per ounce, up around 0.3 percent. This surge occurred in line with expectations of a Federal Reserve interest rate cut in September and a weakening US dollar, strengthening silver's position as a safe-haven asset.
Fundamentally, silver is supported by a global supply deficit estimated to reach 206 million ounces by 2025, as well as increasing industrial demand, particularly from the renewable energy, electric vehicle, and electronics sectors. HSBC has even revised upward its average silver price projection to US$35.14 per ounce this year, reflecting confidence in the precious metal's bullish outlook.
Technically, silver is showing a strong buy signal, with most indicators, such as moving averages, MACD, and RSI, still confirming an uptrend. However, the RSI, at 78, indicates overbought conditions, so the opportunity for a short-term correction remains open. Nevertheless, the breakout pattern provides a new price target in the US$41–43 range, with the potential to even reach US$48–50 in the coming months if momentum continues.
Overall, silver is one of the most promising assets in the commodity market today, supported by a strong combination of fundamental and technical factors. Investors are reminded to remain vigilant about potential short-term profit-taking, although the medium- to long-term trend remains bullish.
Source: Newsmaker.id
