Silver is showing a stronger dynamics than gold. The demand for the metal can be seen during the correction movement in other precious metals. Silver formed a pattern of rectangles near local highs. The fundamental background remains positive. Investment demand for the metal is fixed. Industrial demand will be able to show growth when the world's central banks start stimulating the economy.
The demand for the metal is fixed by the Royal Australian Mint.
It managed to sell much more gold and silver in March 2023 compared to previous months. The U.S. was the main buyer of precious metals.
According to the Mint, there were 80.5 ounces of gold in coins and bullions that were sold in March 2023. This volume was 54% higher than in February. However, compared to March 2022, it sold 30% less gold.
Selling of silver was also good. The Mint succeeded in selling 1.8 million ounces of silver in March 2023. The figure was the best since October 2022 and 10% higher than the previous month.
The International Monetary Fund (IMF) said that the recent increase in interest rates is likely to be temporary. Central banks in developed economies are likely to ease monetary policy as inflation declines. In that case, interest rates will return to pre-pandemic levels.
Neutral interest rates in developed economies will remain low. At the same time, the value of the neutral interest rate in emerging economies will decline to the level of developed countries in the long term.
The rate decrease will be reflected in the growth of precious metals.
According to technical analysis, silver is attempting to move up out of the rectangle. If this movement happens, it is expected that there will be a new wave of growth, which will be comparable to the previous revaluation of the metal a week earlier.
The level of $25,79 will be the upside target. It corresponds to the size of the last shopping surge. Stop-loss can be set at the local minimum updates and in the case of a downward exit from the rectangle. This is the $24.55 level.
Rise in the price for silver:
Take profit – 25.79
Stop-loss – 24.55