Silver is consolidating above the $23 level, inching closer to the initial resistance zone at around $23.5 per ounce. The first part of the week has seen relatively limited volatility for silver, with the price ranging between $23 and $23.60.
This can be viewed positively, indicating a sense of equilibrium in the market. In other words, silver does not appear ready for significant rallies or an easy reclaiming of the psychological threshold at $25, but the overall trend is gradually improving.
From a technical perspective, silver is still in a lateral consolidation mode, but there are signs of strength following the decline observed in May and early June. A clear breakthrough above $24 would be necessary to confirm a proper inversion, but it appears that silver is steadily heading in that direction.
Furthermore, silver has shown relative resilience, especially considering the backdrop of rising interest rates witnessed in recent months. Once central banks curb their hawkish rhetoric, which may not be far off, there could be interesting potential for the silver price (as well as for gold).
Carlo is an external market analyst for Kinesis Money. With a credential background in Economic Finance and International Exchange (MA), Carlo’s critical analysis of gold and silver markets’ performance is frequently quoted by leading publications such as Forbes, Reuters, CNBC, and Nasdaq. This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.