Silver Holds Highs Despite Rally
Silver (XAG/USD) traded above $41 on Wednesday, holding near its highest level in over a decade. After a strong rally in recent weeks, silver remains supported by expectations of a Federal Reserve (The Fed) interest rate cut later this month. The weakening US dollar and increased demand for safe-haven assets are also factors keeping silver strong in global markets.
In addition to monetary factors, the outlook for industrial demand is also supporting silver prices. This metal is widely used in the renewable energy sector, particularly solar panels, which is experiencing rapid growth. The supply deficit that has persisted in recent years has also narrowed the room for correction, encouraging investors to take advantage of falling prices to make new purchases. This situation provides a dual appeal for silver, both as an inflation hedge and a driver of industrial growth.
Technically, silver has successfully broken through key resistance around $40 per ounce, opening the door to a higher level around $42. However, indicators point to overbought conditions that could trigger a short-term correction. Although volatility is expected to increase, the medium-term outlook for silver remains positive, especially if the Fed actually cuts interest rates and global uncertainty remains high.
Source: Newsmaker.id
