Why Is Silver Weakening While Gold Is on Fire?
Silver prices fell again in trading this morning. The main pressure came from the strengthening US dollar, which has dampened the appeal of non-yielding precious metals like silver. This metal, which had previously received support from a global supply deficit, is now struggling to maintain its upward momentum amid macroeconomic pressures.
In addition to monetary factors, slowing industrial demand is also weighing on silver prices. As a metal widely used in electronics, solar panels, and medical equipment, weakening global manufacturing activity has weakened demand for silver compared to previous months.
In global markets, the supply deficit persists, but it is not enough to support prices amid bearish sentiment stemming from the US dollar and high interest rates. This condition makes silver vulnerable to further weakening in the short term, although the long-term outlook is still supported by the energy transition trend that requires this metal.
Analysts believe that as long as the US dollar maintains its strength, silver's movement will remain limited. However, if there is a change in the Fed's stance or signs of recovery in industrial demand, silver has the potential to rebound from today's pressure.
However, from a technical perspective, silver is now entering a crucial zone. The nearest support is in the USD 40.50–40.30 area, while strong resistance is in the USD 41.00–41.20 range. The Relative Strength Index (RSI) indicator is showing overbought conditions, signaling potential consolidation or a short-term correction. If silver can break through this resistance level, the price has the potential to continue its rally towards USD 41.50–42.00. Conversely, if it fails to hold above psychological support, a correction to USD 40.00–39.80 could occur before resuming the uptrend.
Source: Newsmaker.id
