Silver Market Vision

The rate of silver is susceptible to conjecture and supply and demand. The silver price is closely followed by traders due to its potential for volatility, as well as the metal being a viable hedging option. It often tracks the pricing of gold due to store of value demands, but the ratio varies.

Silver futures fell back to $25 an ounce from a one-year high of $25.8 hit on April 13 after a batch of strong earnings reports from heavyweight lenders underscored the systemic stability of the US banking sector. . In addition to reducing demand for safe-haven assets, the events added to the Federal Reserve's tightening room for maneuver and increased the opportunity cost of holding non-interest-bearing assets. Still, silver prices remained more than 4% higher since early April as softer inflation and a weaker labor market supported market bets that the Fed will cut its funds rate three times. this year. Besides,

Our view for now is to go looking for support scenarios, so the $24.38 levels look pretty good right now and likely to continue extending in the coming days as the stock indices are presenting weakening, which could cause a rise in the dollar index and therefore generate a depreciation in commodities as there is a stronger dollar. For now we see resistance nearby at $25.48 as well as at its highest points of $26 usd, but after a completely bullish month we expect a weakening that would mostly be a little profit taking, the same as in gold.

Technical note: The signal from the stochastic is to the downside. He is strong at the moment.