Earlier, we wrote that gold had resumed its recovery. The recovery has been due to a weaker US dollar and as the likes of the ECB and BOC joined some of the other major central banks in turning dovish again last week, this helped to underpin low- and non-interest-bearing assets as bond yields fell.
Silver has risen for more or less the same reasons, although this metal has also found support from commodities being firmer across the board with crude oil hovering near this year’s earlier highs and copper holding its own above a key support level.
As far as silver is concerned, well it has created a number of bullish-looking price candles on its daily chart, but like gold it remains bang in the middle of a neutral zone right now.
We are watching metals prices to see if there will be any significant technical developments over the coming days, due to the above fundamental reasons. But with the key support area between $14.80 and $15.00 being defended last week, and with price remaining above long-term support at $14.00, the path of least resistance is to the upside for silver. Thus, we could soon see new yearly highs for silver.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.