Silver, on the other hand, does not follow Gold’s lead. The market is confronted with resistance at $ 34.59 and a more important ceiling between $ 34.87 and $ 35.40. The intercourse of Monday from $ 33,625 offered temporary exemption, but traders remain careful. A break under this small support can accelerate losses for the 50-day advancing average at $ 32.43.
This underperformance can be linked to weaker industrial signals from China – an important demand center for silver – and a lack of buying interest rates from central banks, which have allocations strongly concentrated in gold. In contrast to gold, silver is missing the same safe-having cachet and it remains vulnerable to swings in the global production sentiment.
Market forecast: gold bullish, silver accessible with downward risk
Bullish’s short -term setup in the short term remains, but Overbought Technicals can lead to a consolidation or pullback, with strong support in the vicinity of $ 2999. However, silver seems to be reached and vulnerable. Not holding above $ 33,625 opens the door to a steeper correction. Until macro drivers improve or silver breaks above $ 35.40, traders can continue to favor gold over silver for directive exposure.
More information in our economic calendar.