🥈Silver surges 5.0%📈

Silver price approaches key resistance at $24.00 per ounce amid supply concerns

Silver price rose sharply on Tuesday and is approaching an eight-month high as investors try to assess how FED's aggressive  tightening process will look next year for hints on demand for precious metals and industrial inputs. Today's unexpected BoJ move boosted concerns that monetary policies of major central banks will push the global economy into a recession in order to cool down inflation, which in turn  increased demand for the precious metals. Also supply concerns provide fuel for the bulls, as New York’s COMEX inventories dropped 70% in the last 18 months to just over 1 million tonnes. Also, the London Bullion Market Association stockpiles fell for the 10th straight month to a record-low 27.1k tonnes last month.

The Silver Institute and Metals Focus stated that the physical silver market, which excludes ETFs, is projected to show the most significant supply deficit in decades this year. "This is expected to amount to 194 million ounces (6 thousand metric tons), meaning demand will outstrip supply by nearly 20%," Fritsch said. "The driving factor behind this is a 16% surge in silver demand to a record level." Industrial demand for silver was at a record in 2022, reaching 539 million ounces, according to Metals Focus managing director Philip Newman.

Silver price jumped over 5.0% and is currently testing key resistance at $24.00 per ounce, which is marked with upper limit of the 1:1 structure, long term downward trendline and previous price reactions. Should a break higher occur, an upward move may accelerate towards next resistance at $25.65, which is marked with 23.6% Fibonacci retracement of the bullish wave launched in March 2020. Source: xStation5