Silver starts the week in a narrow range of $24.57-25.13 per troy ounce.
The Canadian government's decision to increase the investment tax credit for companies producing silver could have an impact on silver prices. In the last budget cycle, Prime Minister Justin Trudeau's government offered a 30% investment tax credit for expenditures related to critical mineral exploration. The decision was announced last month. This preferential treatment also applies to investors who plan to buy stocks of certain companies in the industry.
According to the heads of sectoral organizations, the new measures will help to attract investors who stayed away from the sector because of the unstable market situation.
Canada hosts half of the world's mineral production companies. Based on the Toronto Stock Exchange, the country is considered as one of the best places to set up a business in this sector.
For Chris Dornbos, CEO of E3 Lithium, the government's proposals open new financing opportunities for small mineral companies in Canada.
The Canadian government's decision to increase the investment tax credit for mineral companies has the potential to increase demand for silver, and as a result, encourage more mineral companies to invest in exploration and production. It is also worth to consider the level of investment in silver production.
The consumer price index (CPI) in the U.S. for March is expected this week. According to experts' estimates, growth in the cost of basic goods in the country slowed last month. At the same time, the real estate sector may record an increase in prices, which will contribute 0.4% increase in the index on a monthly basis.
If inflation declines, the demand for silver as a safe haven asset could decline in the short term.
The price of silver consolidated in a narrow range. On the H1 timeframe, the Stochastic Oscillator indicator (standard values) shows the curve exit from the oversold zone, signaling the price movement to the opposite border of the range.
On the M15 timeframe the price is in the creation of the third upward wave. The main impulse of the third wave will occur after the breakthrough of the level of 25.13.
Signal:
The short-term prospects for silver - buying.
The target is at the level of 25.65.
Part of the profit should be fixed near the level of 25.13.
The stop-loss is at the level of 24.40.
"Bullish" trend has a short-term character, so the volume of trade should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
