Silver Remains Bullish Despite Profit-Taking Hamper
Silver prices (XAG/USD) fell sharply on Thursday after hitting a 14-year high of around $41 per ounce in the previous trading session. In the US session, silver traded near $40.7 per ounce, down slightly due to profit-taking by some market participants. Nevertheless, the precious metal remains in a medium-term bullish trend, supported by increasing demand for safe-haven assets amid global uncertainty.
The weakening silver price was also influenced by the stable performance of the US dollar (USD), which had previously pressured the prices of dollar-denominated commodities. Furthermore, the calm in global bond markets following this week's turmoil also dampened aggressive buying sentiment in precious metals. However, expectations of an interest rate cut by the Federal Reserve this month remain the main catalyst maintaining a positive outlook for silver prices in the coming weeks.
Fundamentally, silver also receives support from the industrial sector. Demand from the renewable energy sector, particularly solar cells, remains high, strengthening the fundamental demand for physical silver. Analysts believe that, although the price is currently trending downward, there is ample potential for further upside if the US dollar weakens further or global geopolitical tensions re-emerge. Therefore, investors are advised to continue monitoring the psychological level of $41 as a key area determining the direction of the next trend.
Source: Newsmaker.id
