Silver Holds Above US$41, Market Awaits Breakout or Correction Signal
Silver prices remain firmly above US$41 per ounce and are approaching a 14-year high. The white metal's rally is driven by a combination of fundamental factors, including expectations of US monetary easing, surging industrial demand, and a global supply deficit.
Recent data showing weakening US producer prices (PPI) has increased market confidence that the Federal Reserve will soon cut interest rates. This situation makes silver, along with gold, increasingly attractive as a hedge.
According to an HSBC report, the average silver price projection for 2025 has been raised to US$35.14 per ounce, with the global supply deficit expected to reach 206 million ounces this year. Strong gold price increases, geopolitical tensions, and demand for silver as a safe haven have contributed to the rally.
Furthermore, industrial demand from renewable energy, solar panels, and electronics continues to rise. Since the beginning of the year, silver prices have risen approximately 33%, marking their best performance in more than a decade.
Technicals: US$41.45 Level Determines Trend
While fundamentals support a bullish trend, technicals indicate the market faces a test around the crucial resistance level of US$41.50 per ounce. If it successfully breaks through and holds above this level, silver has the potential to continue its upward movement.
However, if it fails, a correction could drag the price back to the support area of US$40.60 – US$40.30 per ounce.
Today's increase in silver prices reflects a powerful combination of solid industrial demand, a global supply deficit, and expectations of US monetary policy easing. However, the US$41.45 resistance level is a crucial point in determining whether the rally continues or the market enters a consolidation phase.
Source: Newsmaker.id
