G20: what did the leaders decide?
The G20 summit took place in Bali, Indonesia, on November 2022…
Silver: trading sideways
Information is not investment advice
The Forex history counts six silver bull market periods, and the seventh one is possibly right now. Even though gold has a higher price and generally grabs more attention, silver has actually outperformed gold in five of the six previous bull markets for gold and silver. The chart below demonstrates the silver performance during its resurgences.
*Only once gold managed to outperform silver.
Silver is not just a precious metal, it is also an important raw material for industrial purposes. It is widely used in healthcare, electronics, and renewable energy. As you can notice, the tech sector has been prospering these days as never before. Just look at Nasdaq, the stock index, which includes the strongest tech companies. No wonder that it sets record highs almost every day. Therefore, the industrial and technological application of silver couldn’t have been more important for the current time.
In comparison with its safe-haven brother, gold, silver is cheaper and tends to react less to political upheavals and economic hardships. However, it still does react. Besides, gold and silver price movements are positively correlated. The recent optimism over a thaw in US-China relationships weighs on both precious metals. Today, although the USD’s weakness generally pushes silver prices up, it gets offset by the increase in US government bond yields.
Technical tips
Silver has bounced off the 61.8% Fibonacci level at $27.40 but then has turned to the upside again. If it crosses this level again, it will drive the price further to the next resistance at the high of August 18 at $28.45. However, be cautious as this resistance is quite strong, and, therefore, the price is likely to pull back rather than break out. In the opposite scenario, if silver breaks out the 50.0% Fibonacci level at $26.60, it may dip down to the next support at the 38.2% Fibonacci level of $25.85. Bulls may find both support levels a good entry point.
Similar
The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Popular
Bitcoin & Gold - Safe Haven Amid Bank Crisis
Investor confidence in the global financial system has been shaken by the collapse of Silicon Valley Bank and Credit Suisse. As a result, many are turning to bearer assets, such as gold and bitcoin, to store value outside of the system without...
How Will FOMC Meeting Affect the Markets
As expected, the Federal Reserve hiked the key US interest rate by 25 basis points for the second straight time during its two-day meeting ending March 22. The unanimous decision of the FOMC came amid major central banks' commitment to fighting inflation while maintaining economic...
Is JPY Ready to Reclaim All-Year High?
Between October 2022, and January 2023, the Japanese Yen outperformed several other currency pairs, resulting in over a thousand pips move on pairs like EURJPY, GBPJPY, and 2000-plus...
Choose your payment system
