The central bank’s actions have led to a broader rally in commodity markets. The copper price rose by more than 4%, while gold reached new record highs. The Global X Copper Miners ETF (COPX) rose 7.12%, and the Global
Short and long term prospects
In the near term, the PBOC’s easing will likely continue to drive bullish sentiment for precious metals, including silver. Increased liquidity in the Chinese economy is expected to boost demand for industrial metals, supporting prices.
Over the longer term, the impact on silver prices will depend on the sustainability of China’s economic recovery. While the stimulus measures are positive for demand, structural problems in the Chinese economy and ongoing trade tensions between the US and China could cause volatility.
Market forecast
The outlook for silver appears bullish in the near term. The combination of the PBOC easing, increased industrial demand, and silver’s dual role as both a precious and industrial metal positions it well for potential gains. Traders should watch for a possible breakout above $32.52, which could mark a move towards multi-year highs. However, caution is needed as the market absorbs the full implications of China’s monetary policy changes.