Silver continues its strong rebound for the second week in a row and is on track to close above $30 per ounce barrier, the highest point since February 2013. Metals continue to rise, despite China's mixed data, although at the same time the promise of more support for consumers and the real estate market is creating a positive impact on the overall metals market.
Source: xStation5
Silver and other precious metals are moving in pursuit of gold, and sustained high levels in the price of gold bullion should provide chances for a continuation of the bull market in the other precious metals. Where to look for important levels?
The ratio of gold and silver prices has already fallen to the 10-year moving average, which can be considered the first important milestone. The next could be the 20-year static average, which is close to the 2017 and 2021 lows. This average is located at level 68. Assuming a gold price of $2,400, this would give a valuation for silver of $35.3 per ounce, or more than 15% of the implied move from current levels. It would also mean a test of the local peaks of September 2012. Source: Bloomberg Finance LP, XTB
However, it is worth remembering that silver, in addition to the sheer pressure from gold, also has a fundamental basis in terms of growth. It is preparing for the 4th consecutive major shortage in the market, and the metal is used in new technologies, primarily related to energy.
Source: Bloomberg Finance LP, XTB
Daily summary: Wall Street gains, oil slides from the local high 📌
Technical analysis 📈 Gold gains 1.5% amid weakening US dollar
Market Wrap: UK100 skyrockets after BoE 🇬🇧 🚀 Euphoric gain as ECB Lagarde speaks 🇪🇺 📈
Cocoa futures surge 4% 📈 The bottom is in?
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
