Silver Hits Key Level, Market Awaits US Inflation Data
Silver prices rose above $41 in European trading on Monday, driven by a weaker US dollar following the release of weaker-than-expected employment data on Friday. This data raised expectations that the Federal Reserve could soon cut interest rates, thus increasing the appeal of precious metal-based assets, including silver. Investors are now awaiting US inflation data due this week for a clearer picture of the next direction of monetary policy.
Fundamentally, silver is also supported by the prospect of rising industrial demand, particularly from the renewable energy and electronics sectors. With the increasing global energy transition, silver consumption is expected to remain strong. However, sentiment remains clouded by geopolitical uncertainty and economic slowdowns in several major economies, which could potentially suppress demand for this precious metal in the short term.
Technically, silver is currently trading around $40.6 per ounce, with the nearest support area at $40.00 and strong resistance around $41.20. If the price is able to break above this resistance level, further upside is possible, reaching $42.00. Conversely, failure to hold above this support level could trigger a correction towards the $39.50 area.
Source: Newsmaker.id
