Silver continues its upward trend, recording $32.28 yesterday, the highest level since May 29, 2024. It is currently trading near $32.00. The biggest challenge lies in reaching the $32.51 level, which is the highest recorded this year, specifically on May 20, and breaking through it.
Silver has risen by approximately 22% since the August 5, 2024 low, when it hit $26.45, to the peak it reached yesterday at $32.28. As a result, silver can be considered to be in a bull market.
It is worth noting that the price of silver has increased by around 34% since the beginning of the year, surpassing the performance of gold, which has risen by about 29% since the start of the year. There are expectations that both will continue their upward trend.
Silver is currently benefiting from several factors, including the rise in gold prices, which reached a record high of $2,670 yesterday. Additionally, the U.S. Federal Reserve reduced interest rates by 50 basis points during its meeting last week, with expectations of further rate cuts in the near future, which supports silver, as it does not generate any yield. Furthermore, silver is used in various industries, such as pharmaceuticals, medical supplies, electronics, and more.
It’s also worth mentioning that we’ve seen price increases in other commodities such as copper, nickel, and aluminum, driven by two main factors: the U.S. interest rate cuts, and recent stimulus measures by the People’s Bank of China to support the struggling Chinese economy, both of which have provided upward momentum for most commodities.
Today, key U.S. indicators such as durable goods orders, GDP, unemployment claims, and pending home sales are being released. Additionally, markets are awaiting a speech by U.S. Federal Reserve Chairman Jerome Powell.
From a technical perspective, the bullish trend for silver prices appears to be dominant in the coming phase. A golden cross occurred between the 20-day moving average (in gray), which is at $29.82, and the 50-day moving average (in blue), which stands at $29.07, on September 12, 2024.
The Relative Strength Index (RSI) also indicates positive momentum for silver, with a reading of around 65 points. A bullish crossover was also observed between the MACD (in blue) and the Signal Line (in orange) on September 12, 2024, signaling further bullish momentum for silver.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
