Reasons Behind the Recent Rise in Silver:
Silver (XAG/USD) extended its gains for the third consecutive session, reaching its highest levels in 14 years and surpassing the $42 mark during Asian trading. This rally has been driven by increasing bets on Federal Reserve rate cuts, alongside mounting signs of weakness in the US labor market. Weekly Jobless Claims rose to their highest level since 2021, reinforcing expectations of three rate cuts before the end of the year.
While weak economic data supports a shift toward a more accommodative monetary policy, geopolitical tensions have further boosted the appeal of Silver as a safe-haven asset.
On the industrial side, strong demand for Silver from the solar, electric vehicle, and electronics sectors continues to support prices, amid ongoing supply constraints. This mix of economic, geopolitical, and industrial demand factors has placed Silver in a strong position after breaking levels not seen since 2011, paving the way for further moves ahead.
Technical Analysis of Silver Prices:
Silver is trading in a general upward trend, forming higher highs and higher lows, reflecting strong bullish momentum pushing prices to elevated levels.
A pullback toward $40.83 would be considered a correction within the broader uptrend, with potential for a rebound targeting $41.966 in the short to medium term.
Meanwhile, the $40.39 level represents the last line of support on the 4-hour chart. A break below this level, confirmed by a 4-hour candle close, would signal a bearish shift and mark the end of the prevailing uptrend on this timeframe.
Silver (XAG/USD) extended its gains for the third consecutive session, reaching its highest levels in 14 years and surpassing the $42 mark during Asian trading. This rally has been driven by increasing bets on Federal Reserve rate cuts, alongside mounting signs of weakness in the US labor market. Weekly Jobless Claims rose to their highest level since 2021, reinforcing expectations of three rate cuts before the end of the year.
While weak economic data supports a shift toward a more accommodative monetary policy, geopolitical tensions have further boosted the appeal of Silver as a safe-haven asset.
On the industrial side, strong demand for Silver from the solar, electric vehicle, and electronics sectors continues to support prices, amid ongoing supply constraints. This mix of economic, geopolitical, and industrial demand factors has placed Silver in a strong position after breaking levels not seen since 2011, paving the way for further moves ahead.
Technical Analysis of Silver Prices:
Silver is trading in a general upward trend, forming higher highs and higher lows, reflecting strong bullish momentum pushing prices to elevated levels.
A pullback toward $40.83 would be considered a correction within the broader uptrend, with potential for a rebound targeting $41.966 in the short to medium term.
Meanwhile, the $40.39 level represents the last line of support on the 4-hour chart. A break below this level, confirmed by a 4-hour candle close, would signal a bearish shift and mark the end of the prevailing uptrend on this timeframe.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.