The upward trend of silver remains high

30 March 2023 232
The upward trend of silver remains high

The emerging U.S. banking crisis in the middle of March provided good support for the precious metal. The catalyst for great volatility in the market was the news about the bankruptcy of Silicon Valley Bank in California and Signature Bank in New York. Last Sunday, the Federal Deposit Insurance Corporation of the United States reduced concerns about a widespread banking crisis.

It said that the bank holding company First Citizens Bank & Trust Company would assume all liabilities for deposits and loans of the bankrupt Silicon Valley Bank (SVB).

Gold was correcting for a few days on this background, with a downward trend, while silver was trending upward. As investors say, "hold the gold, and buy the silver".

According to a recent study by the Silver Institute, sales of silver jewelry have increased significantly. A recent survey of marketers found that 61% of retailers increased their silver jewelry inventories by an average of 21% in 2022.

The need for silver is growing in various industries. An Australian study found that silver reserves could run out by 2050 because of its widespread use in solar cell production. In addition, investment demand for silver rose by 18% to 329 million ounces in 2022.

Demand for the white metal is growing in a variety of industries, including jewelry and solar panel manufacturing. Factors such as increased investment demand and undervaluation compared to gold are already reflected in the price. In combination with other factors, such as geopolitical risks and the general economic situation, all this leads to an increase in the price of silver.

The price for silver continues to renew the highs of the emerging uptrend on the H1 timeframe. Overcoming the resistance level of 23.50 indicates the strength of the growing trend, as this level is the top of the previous impulse. A breakdown of the level of 23.50 gives a signal for buying at the current price.

 

Signal:

The short-term prospects for silver - buying

The target is at the level of 25.00.

Part of the profit should be fixed near the level of 24.20.

The stop-loss is at the level of 22.95.

 

"Bullish" trend has a card-like character, so the volume of trade should be less than 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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