The silver price closed last week up by 4.5%, and its monthly performance shows a double-digit growth (+13%), outperforming gold (+9%).
While the ECB, the Fed and the BoE all recently increased rates, investors are already looking ahead to the next steps in monetary policy.
The new element in the market is represented by the growing risks perceived in the whole banking sector. Of course, there could be an overreaction, but European banks’ stocks have plummeted by 18% in just three weeks and investors are betting on the precious metal as a safe haven in case of new market turmoil.
The modest decline seen in the last few hours is a technical reaction to the rebound seen in the stock markets.
Despite this, the major trend remains positive, and we will have a proper inversion only with a breakdown of the support zone placed at $22.4-22.5. In this case, there could be space for further decline, with a potential target to the next key support zone, located at $21.5.
On the other hand, a return of prices above $23.3 would indicate a regained momentum, with the next target being the recent top of $23.5 and the peak of the first weeks of 2023 at $24.2-24.5.
Of course, the evolution of the silver price remains strongly linked to the next steps in the Fed’s monetary policy and the overall banking situation.
Carlo Alberto De Casa is an external Market Analyst for Kinesis Money, responsible for updating the community with insights and analysis on the gold and silver markets. His precious metals market commentary has featured in the likes of Forbes, Reuters, CNBC, and Nasdaq.
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.
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.