Silver prices have reached a new 12-year high, driven by escalating tensions in the Middle East, uncertainty surrounding the US presidential elections, and increased demand for the metal in various industries.
The People’s Bank of China’s (PBoC) decision to cut interest rates has also boosted demand for silver as a metal used in industries like electric vehicles and mining.
While the US Dollar has strengthened, it has not significantly impacted silver prices. The Federal Reserve is still expected to cut interest rates, which supports the overall market environment for precious metals.
Key Factors:
- Middle East Tensions: Escalating tensions between Israel and Hezbollah have increased demand for silver as a safe-haven asset.
- US Election Uncertainty: The close race between Donald Trump and Kamala Harris has created uncertainty and boosted demand for safe-haven assets.
- China’s Rate Cut: The PBoC’s interest rate cut is expected to boost China’s domestic economy and increase demand for silver.
- US Dollar: The US Dollar’s strength has not significantly impacted silver prices.
Technical Analysis:
- Silver prices have broken above a key resistance level, indicating a strong uptrend.
- The 20- and 50-day Exponential Moving Averages (EMAs) are sloping upwards, suggesting further upside potential.
- The Relative Strength Index (RSI) is above 60.00, indicating bullish momentum.
