It is not difficult to describe the silver trend as extremely bullish. The precious metal has gained 19% in the last 30 days and over 30% from the bottom reached in March.
Moreover, the futures contract related to silver jumped above the $26 mark for the first time in around a year yesterday, and the price has remained positive for the fifth week in a row. In other words, investors are continuing to buy any dips, confident in the solidity of the trend.
However, the extreme speed of this rally means that we are in a volatile scenario, and a decline in movement could be swift. But for the time being, the silver price is not showing any signs of weakness.
What are the reasons behind this appreciation? Silver has been lifted by expectations for a dovish Fed, while the USD dollar has declined. Furthermore, the fundamental environment is also bullish, with both industrial demand and the ETF sector positive.
From a technical perspective, a confirmation above $26 could open the door for further gains, with the potential for a rally to the next resistances, placed at $26.80 and $27.40. On the other hand, the first solid support zone should be represented by the key level of $25-25.20.
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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