- Summary:
- China posted upbeat industrial production data, while safe haven demand is still at play. These two factors will likely keep silver price up.
Silver price rose to ten-day highs on Friday, propelled by rising safe haven demand. The gray metal hit an intraday high of $32.40 and was up by 1.9 percent at the time of writing, extending its winning streak to eight days. Silver price has risen by 2.5 percent in the last week, and the momentum will likely keep it on the ascending lane in the near-term.
The demand for silver has risen this week, with the uncertainty surrounding China’s economic stimulus raising demand for safe haven assets. The commodity also has propulsion from the escalating conflict in the Middle East. That has also brought traction to silver’s rich cousin, gold. Meanwhile, China’s GDP grew by 4.6 percent year-over-year in the third quarter, matching median forecasts.
However, the growth rate fell below the government’s target rate of 5 percent, raising the prospect of a more aggressive stimulus intervention. Such a move could add propulsion to silver price. In addition, China’s industrial production grew at a faster rate than expected in September,coming in at 5.6 percent from August’s rate of 4.5 percent and above the forecast rate of 4.6 percent. That, too is a bullish sign for silver, as it could raise the metal’s industrial demand.
Silver price prediction
The momentum on silver price calls for further upside above the pivot mark at 32.35. With the bullish momentum in play, the first resistance will likely be at 32.60. However, if the bullishnes persists, the commodity could break above that level to the second barrier at 32.88.
Alternatively, a move below 32.35 will signal the onset of a bearish control. In that case, the metal’s price could find the first support at 32.15. However, a stronger downward momentum could break below that level. At that point, the upside narrative will be invalid, and the decline could extend to test the second support at 31.93.
