Silver got a healthy breakout and appears reasonably attractive as a buy following the signal.
1. After an extended consolidation, silver has broken out of its upper range to retest the previous swing high.
This breakout from its sideways range is technically significant, reinforced by a strong bullish candlestick that indicates robust upward momentum. Another $0.50 move would mark the highest level in over 12 years, which could attract a surge of speculative buying which may ignite the following surge.
2. Fundamentally, silver prices are rising in tandem with gold, as silver serves as an alternative investment in the precious metals group and acts as a reliable safe-haven asset, making this rally justifiable.
3. Especially in the current situation, where economic fragility, unresolved trade issues, and escalating geopolitical tensions are all pushing investors toward precious metals.
4. In addition, the unusually large amount of US debt maturing during this month has contributed to a weaker US dollar, which in turn provides further support for precious metal prices.
Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness
1. After an extended consolidation, silver has broken out of its upper range to retest the previous swing high.
This breakout from its sideways range is technically significant, reinforced by a strong bullish candlestick that indicates robust upward momentum. Another $0.50 move would mark the highest level in over 12 years, which could attract a surge of speculative buying which may ignite the following surge.
2. Fundamentally, silver prices are rising in tandem with gold, as silver serves as an alternative investment in the precious metals group and acts as a reliable safe-haven asset, making this rally justifiable.
3. Especially in the current situation, where economic fragility, unresolved trade issues, and escalating geopolitical tensions are all pushing investors toward precious metals.
4. In addition, the unusually large amount of US debt maturing during this month has contributed to a weaker US dollar, which in turn provides further support for precious metal prices.
Analysis by: Krisada Yoonaisil, Financial Markets Strategist at Exness
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.