Silver price opens the week in the red as investors worry about the ongoing Israel-Hamas conflict. Uncertainty looms around the global markets as investors seek safer options to store value. Precious metals like gold and metals had a very strong rebound at the end of last week.
Investors rushed to buy precious metals after the dollar strength index opened the New York trading session with a 0.34% drop. The yields started to drop last week, which caused a drop in the dollar strength index, which has had a phenomenal run in the last 2 months.
On Monday, the US Treasury yields showed a 1.9% gain, which resulted in a slight pullback in the Gold and Silver prices. At the time of writing, Silver is priced at $22.6 after a 0.4% drop in its New York session.
Since silver is a critical component for manufacturing solar panels, the sudden surge in demand for solar panels further boosted the buying pressure on Silver price. XAG/USD is up 8.6% from its October lows due to last week’s pullback in bond yield and DXY index. If you are planning to buy Gold or Silver, it might be a better idea to wait for a slight pullback before chasing the ongoing pump.
As I predicted in my previous analysis, Silver price retested the 20.5-21 demand zone and saw a strong rebound. This technical move suggests that investors are ready to dump their money on the precious metal below the $21 price level.
After a remarkable 8.3% rebound from its October lows, the bulls still have some fuel left for another rally. I expect the price to retest the 200 MA this week, which lies around $23.3 level. The silver price prediction will flip bullish in case of a clear break above $23. However, the DXY index needs to have a deeper pullback for the metals to surge.
This post was last modified on %s = human-readable time difference 18:33