Silver Prices Up For the Week on Increased China-Driven Demand

Summary:

Silver prices on the XAGUSD chart have gained 60% since March 2020, as increased physical demand and exports shore up prices.

Silver price action is ticking upwards on the day after yesterday’s dip broke a 4-day winning streak. Silver price on the XAGUSD chart is up 0.19% to 19.168 as the asset attempts to recoup the ground it lost yesterday. The white metal has benefitted from a recovery in manufacturing and factory production, as shown by the ISM Manufacturing PMI data of the last two months. A rise in demand from China has also aided this recovery by precipitating a 104% rise in silver jewellery exports from India (from $830 million to $1.7billion). An increase in physical demand, as well as a surge in open interest, has also helped boost silver price as it rises nearly 60% from the lows of March 2020.

Technical Outlook for Silver Price

Silver price on the daily chart of the XAGUSD pair continues to trade in the ascending channel which encapsulates price action from 24 June to date. The daily candle has just bounced from the lower border of the channel, where it intersects the 18.932 support line. Further ascent from that point targets the channel’s return line, where it crosses the previous high of 4 September 2019 at 19.574. A break of this area opens the door towards the Aug/Sept 2016 highs at 20.062. A push towards the 1 August 2016 high of 20.732 cannot be ruled out.