The price of Silver surged past $32.00 during the North American session, driven by falling US Treasury yields, with prices up 2.26% overall. The RSI indicated growing bullish momentum, with key resistance levels at $32.95 and $33.00 in sight. A pullback below $32.00 could see support at $31.32, with stronger backing around the 50-DMA at $30.13.
Silver’s price uptrend remained intact, almost reaching a yearly record high. The XAG/USD cleared the $32.00 psychological barrier and extended gains past the $32.50 area. The RSI was bullish, indicating buyers were gaining momentum. Key resistance levels for XAG/USD included the year-to-date high at $32.95 and the $33.00 mark, with a potential peak at $35.40. On the other hand, support levels could be found at the October 17 swing low of $31.32 and the 50-DMA at $30.13.
Investors often trade Silver as a store of value, a medium of exchange, or a potential hedge during high-inflation periods. While less popular than Gold, Silver can be used to diversify investment portfolios. Silver prices can be influenced by factors such as geopolitical instability, fears of recession, interest rates, and the behavior of the US Dollar. Additionally, industrial demand, mining supply, and recycling rates can also impact Silver prices.
Silver is widely used in industries like electronics and solar energy due to its high electric conductivity. A surge in demand from these sectors can lead to an increase in Silver prices, while a decline in demand can lower prices. Silver prices often follow Gold’s movements, as both metals are considered safe-haven assets. The Gold/Silver ratio can help determine the relative valuation between the two metals, with a high ratio potentially indicating that Silver is undervalued.
In conclusion, the price of Silver surged past $32.00 during the North American session, driven by falling US Treasury yields. Key resistance levels were identified at $32.95 and $33.00, with support levels at $31.32 and $30.13. Silver is traded by investors looking to diversify their portfolios, hedge against inflation, or take advantage of its intrinsic value. Factors impacting Silver prices include geopolitical instability, industrial demand, interest rates, and the behavior of the US Dollar. The Gold/Silver ratio can help investors determine the relative valuation between Gold and Silver, providing insights into potential trading opportunities.
