Silver is currently being traded above the key support at $ 33.39, with extra levels at $ 32.53 and $ 31.81. The most critical support is on the 50-day advancing average of $ 31.59, a level that has consistently offered a floor for the market. As long as silver stays above these levels, the bullish trend remains in the game.
At the top there is considerable space for further profit, with the next large resistance zone between $ 34.87 and $ 35.40. A movement beyond this range can cause extra momentum purchases, which may set up a retest of multi -year highlights.
Gold’s Surge strengthens the Bullish Case of Silver
Gold’s meeting beyond $ 3,000 underlines a strong demand for precious metals in response to global economic uncertainty. Central banks, in particular China, have aggressively raised the gold reserves, which indicates a shift of the US dollar. This trend also supports silver, given its dual role as both an industrial and a monetary active.
Moreover, the expectations of a more accommodating Federal Reserve have fueled a weaker dollar, which further support supporting precious metals. Traders praise later this year in reducing interest rate letings, which would increase Silver’s profession as a cover against currency evaluation.
Market forecast: Silver to test higher levels
The recent consolidation of Silver suggests a break instead of a reversal. If prices remain above $ 33.39, buyers can push the market to the next major resistance to $ 34.87- $ 35.40. Given the constant power in gold, safe harbor demand and the Dovish attitude of the FED, silver will probably retain its upward trend.
Traders must look forward to any persistent movement above $ 35.40, which can open the door for an more aggressive rally. Conversely, a break under $ 31.59 would be an early warning for the weakness of the trend. For now, the prospects Bullish remains, with further profit expected in the short term.