In our last market analysis, we suggested that silver was offering interesting rebounding signals and was trying to consolidate its recovery.
This scenario has been confirmed in the first part of this week. Indeed, buyers have been very active on silver, while the spot price broke the resistance of $23 per ounce, quickly jumping above $23.5.
Moreover, silver significantly overperformed gold, showing a return of interest in the grey metal. For many investors silver prices below $23 appeared as too cheap, especially when considering the growing use from the industrial sector, particularly in the photovoltaic field and in electric cars.
The technical analysis is offering positive indicators too. Indeed, from a technical perspective, the spot price of silver seems to have found in the last few weeks a solid support zone between $22 and $22.5 and the clear break above the $23 mark just made space for new rebounds. Looking at the next potential targets, there are resistance zones placed at $24 and $24.3-24.4, while the high hit in July at $25.1-25.2 appears still relatively far.
From a macroeconomic point of view, the price of silver remains strongly linked to the U.S. Dollar and to expectations surrounding the next decisions of monetary policy by the Federal Reserve but, overall, we are seeing encouraging signals.
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