Silver prices surged to $34.22 per ounce, reaching a 12-year high due to geopolitical tensions and U.S. election uncertainty.
Key Points
- Investors sought silver as a safe-haven asset amidst global uncertainty.
- Clean energy demand, especially for solar panels, boosted industrial usage.
- China’s rate cuts supported silver’s rise, improving industrial demand prospects.
Silver Daily Price Analysis – 21/10/2024
Silver prices have surged significantly, reaching $34.22 per ounce, marking a near 12-year high as a confluence of global factors bolsters demand for the precious metal. As of today, silver has risen 2.95% from its opening price of $33.915, continuing its upward momentum from Friday, when it closed at $33.235, reflecting a 4.59% increase.
Several key drivers have supported this robust price rally. Rising geopolitical tensions, particularly in the Middle East, combined with heightened uncertainties surrounding the upcoming U.S. elections, have increased safe-haven demand for precious metals like silver. This has made silver an attractive option for investors looking to hedge against political and economic instability.
In addition, the ongoing global push toward clean energy has further strengthened silver’s position. As a critical industrial metal, silver is extensively used in the production of solar panels, and expectations of heightened demand from the renewable energy sector are adding upward pressure on its price.
China’s central bank has also played a significant role in boosting the silver market. The People’s Bank of China (PBOC) recently cut its one-year and five-year loan prime rates to record lows, with the one-year rate dropping by 25 basis points to 3.1% and the five-year rate to 3.6%. These cuts are aimed at supporting economic growth in China, the world’s largest consumer of industrial metals. This dovish monetary policy, coupled with potential further reductions in banks’ reserve requirements, has improved the outlook for industrial demand, further driving up silver prices.
Overall, silver’s bullish run is being fueled by both safe-haven demand and industrial usage expectations, with China’s monetary easing providing additional support to the upward trend. Looking ahead, these factors are likely to continue influencing the market, though much will depend on developments in geopolitical tensions and global economic conditions.
Read More: Silver Price Forecast for Q4
Key Economic Data and News to Be Released Today
Several key economic events are set to take place today, which could influence silver prices. Dallas Fed President Lorie Logan will speak early in the day, followed by the release of the Conference Board’s Leading Economic Index for September. Any signs of economic weakness or dovish statements can potentially boost safe-haven demand for silver.
Additionally, speeches from Minneapolis Fed President Neel Kashkari and San Francisco Fed President Mary Daly later today may offer clues on future monetary policy, further affecting silver’s appeal as a hedge against inflation.
A dovish stance from the Fed officials, signaling potential rate cuts or easing, could weaken the U.S. dollar, which would likely push silver prices higher as the metal becomes more attractive to investors. Conversely, any hawkish tones could strengthen the dollar, potentially putting pressure on silver’s upward trajectory.
Silver Technical Analysis – 21/10/2024
Silver stands a chance to go further to the upside in the short term, but before then, we can expect some pullback. Let’s break down the price action:
In the 15-minute timeframe, we can see some interesting things: the price is currently trending above the 200 EMA, showing strong bullish momentum. However, the RSI has started diving towards the oversold region as prices struggled to break above the key resistance level.
While scalpers may want to jump on the pullback, it is better to wait for the price to retest either the bullish trendline or bounce off the 200 EMA and then enter a long position, following the trend.
Silver Fibonacci Key Price Levels 21/10/2024
Short-term traders planning to trade XAG/USD today should keep a close eye on the following key price levels for the day:
| Support | Resistance |
| 33.020 | 33.830 |
| 32.210 | 34.330 |
| 30.900 | 35.140 |
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
