Silver Prices Poised to Rise to $35 in Coming Weeks
Silver $Silver - main 2409(SImain)$ prices have retreated to $31.033 an ounce this week, but analysis by Fawad Razaqzada, market analyst at StoneX Group, suggested that prices could rise above $35 an ounce this summer. Silver prices rose about 7% last week, the biggest weekly gain since mid-May.
Razaqzada pointed out:
The weak U.S. economic data raised market expectations for the Federal Reserve to cut interest rates in September, the dollar weakened against a basket of foreign currencies, and the French election concerns, silver prices broke out of the consolidation last week.
Despite a weak start to the week, gold and silver still have a lot of room to rise, he wrote in a note. He said that "buying the dip" remains his preferred strategy in the precious metals market.
From a technical point of view, before last week, silver had been on a downward trend in June. However, after testing the main support area of $28.70- $29.00, buyers came back in. In this process, a number of short-term resistance levels were "taken down," and some became positions that silver prices must hold as they continue to rise.
In addition to reclaiming the uptrend line from February, silver has risen back above the 21-day index moving average, and more importantly, it has broken the resistance level of the bull flag pattern (around the $30.00- $30.20 area). Therefore, if silver prices pull back after CPI data is released this week, $30.00- $30.20 will be a key support area.
However, looking at the longer-term weekly chart, the silver price has just recently broken out of its long-term consolidation range, or is on the verge of a larger rally. If nothing else, silver prices could rise to $35 an ounce or even higher in the coming weeks.
In the first half of the year, silver prices led the way with a nearly 22.5 per cent rise, driven by a lack of global supply and increased demand. In January, the World Silver Institute forecast that global silver demand in 2024 would grow 1% year on year to a near-record high of 1.2 billion ounces, driven by industrial applications, particularly the booming solar industry.
The silver market deficit is expected to widen 17% to 215.3 million ounces this year, which would also be the fourth consecutive year of structural deficits.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
