Silver’s upward movement has paused as the demand for safe-haven assets diminishes following a US-Japan trade agreement. Trading in a narrow range, silver is struggling to breach the $39.40 mark, retaining earlier gains but reaching exhaustion signs at $39.15.<\/p>\n
The agreement between the US and Japan, which reduces tariffs on imports from Japan to 15%, has improved market sentiment. This has affected the demand for traditional safe-havens like silver, limiting its upward progression for now.<\/p>\n
Technically, silver’s bullish trend is weakening, shown by an overbought RSI and bearish divergence. Buyers should be cautious as resistance now becomes support at $39.15, with further support at $38.75 and $38.10.<\/p>\n
Industrial demand impacts silver, utilised in electronics and solar sectors due to high conductivity. Demand surges can raise prices, while declines lower them. Economies like the US, China, and India influence silver price volatility due to their large industrial sectors.<\/p>\n
Silver prices often mimic gold’s movements. When gold rises, silver tends to increase similarly. The Gold\/Silver ratio can offer insights into relative valuations, signalling if one metal might be undervalued or overvalued compared to the other.<\/p>\n
We see the upward movement has stalled as broader market sentiment improves, partly due to Federal Reserve statements suggesting interest rates will remain elevated. This shift lessens the appeal of non-yielding safe havens, putting a cap on prices for now. We believe this pause creates an opportunity for tactical, short-term trades.<\/p>\n
Given the technical exhaustion signs, such as an overbought RSI which recently climbed above the 70 mark, we are considering short-term bearish strategies. Purchasing put options with strike prices below the initial $39.15 support level could be a prudent way to capitalize on a potential pullback. A confirmed break of this level would signal a move towards the subsequent support zones.<\/p>\n
However, we must weigh this against the powerful industrial demand narrative. The Silver Institute forecasts that global industrial silver demand will rise by 9% to a record 632 million ounces in 2024, fueled by massive investment in solar panel manufacturing and automotive electronics. This underlying strength should prevent a dramatic price collapse and could buffer any significant downturns.<\/p>\n
We are also closely watching the precious metals relationship for relative value signals. The Gold\/Silver ratio is currently near 80:1, substantially higher than its 20th-century historical average of around 50:1, suggesting silver remains cheap compared to its counterpart. For traders with a longer time horizon, any substantial dip caused by short-term sentiment may present a strategic entry point for longer-dated futures or call options.<\/p>\n","protected":false},"excerpt":{"rendered":"
Silver stalls near $39.40 as safe-haven demand wanes; technicals show exhaustion, support holds at $39.15.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-27040","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=27040"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27040\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=27040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=27040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=27040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}