Silver remains in a strong position as it reaches a 12-month record above $25.5. In other words, investors are continuing to accumulate the precious metal, increasing their long position.
The recent rebound of silver is proving to have a solid basis, being supported by both technical and fundamental reasons. Indeed, from the technical side we have recently seen a dovish re-price of Federal Reserve rate expectations for the next 12-18 months.
This is setting a favourable environment for the whole precious metal sector, including silver. Moreover, analysing the fundamentals, the demand for physical silver from the photovoltaic industry and electric car batteries remains significant, and the trend is not expected to curb any soon.
From a technical point of view, the silver price rebounded by 25% in just five weeks, confirming a solid bullish trend. After the breakout of $24 and $24.4 – which are now the first support zones – the trend remains solidly positive. The next resistances are placed at $26 and $26.8.
Checking the macroeconomic calendar, investors are now waiting for the US CPI data and the FOMC meeting minutes. Any dovish indication could trigger a new recovery of the precious metal.
With a credential background in Economic Finance and International Exchange (MA), his critical analysis of gold and silver markets’ performance is frequently quoted by leading publications, week on week.
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