Uncertainty remains dominant in both the geopolitical and macroeconomic scenarios.
Indeed, the war between Russia and Ukraine does not seem to be close to an end, while inflation pressure is forcing central banks to act. Investors are now betting the Fed to raise rates by 0.5% in May, while this week the ECB could include some hawkish notes in its forward guidance.
Despite central banks having started to reduce the dovish monetary policies of the last few years, the majority of commodities posted a strong Q1, including silver, which is up 6.5% YTD.
Live Silver ($/oz) Price
Also, the new week started positively for the grey metal. Indeed, the silver price has surpassed the key resistance level of $25 per ounce.
It will be interesting if silver can hold above this threshold. Indeed, last week, the area between $25 and $25.10 has already managed to curb a silver rebound on a few occasions, confirming it to be a solid resistance. Therefore, a clear jump above the $25 threshold would represent a bullish signal for the precious metal.
Due to its strong correlation with gold, we could note that the surpass of $1,950 by gold could surely help silver to remain above $25. In this scenario, the gold-silver ratio, which represents how many ounces of silver it would take to buy one ounce of gold, is steady in the region of 78.5.
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Carlo Alberto De Casa is an external Market Analyst for Kinesis Money.
He also writes as a technical analyst for the Italian newspaper La Stampa.
Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018.
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