Is Silver Still Hot or Ready for a Correction?
Silver prices are still moving at high levels today, holding near record levels after a sharp rally in recent weeks. The main sentiment stems from expectations of further monetary easing in the US after the Fed cut interest rates again. Lower interest rates make non-yielding assets like silver and gold more attractive, especially amid inflation concerns and a weakening US dollar.
From a fundamental perspective, silver benefits from two sources of demand: as a precious metal and as an industrial metal. Physical demand from solar panels, electric vehicles, and electronics remains strong, while tight inventories and distribution disruptions in some trading centers add to the impression of "physical tightness" in the market. This helps contain selling pressure even though prices have risen significantly.
However, traders also need to be vigilant. Silver's movements are still heavily influenced by gold and global risk sentiment. If gold experiences a sharp correction or economic data triggers a sudden strengthening of the dollar, silver could potentially move more volatile and correct more deeply than gold. For now, the trend remains bullish, but the upward phase has been "prolonged," so the risk of profit-taking remains high. (az)
Source: Newsmaker.id
