Silver tested $24 per ounce one more time. The prospect of further interest rate hikes by central banks is opposed by strong metal fundamentals.
Last week at the Fed meeting it was decided to pause in tightening monetary policy. Traders are not yet ready to take risks because of continuing concerns about a possible recession in the economies of many countries.
The long-term signals for silver remain positive. Thus, the Indian company Fortune Business Insights predicts a substantial growth in the global market of precious metals over the next 5 years. According to experts, its volume will exceed 400 billion U.S. dollars, which is significantly higher than the value of 275 billion in 2021.
Over the next 5 years, Fortune Business estimates that the precious metals market will grow at a rate of 5.6% annually.
Experts believe that one of the key factors in the growth of the precious metals market will be the demand for jewelry in Southeast Asia. Gold and silver are the most important elements in wedding ceremonies. And regional population growth and purchasing power drive market growth.
Silver would benefit from the development of electronics.
Not all market participants support such an optimistic forecast for precious metals. For example, IMARC Group, an international market analysis team, expects the growth in the global market of precious metals to be about 270 billion U.S. dollars by 2028. In the company's analysts' opinion, the average annual growth rate over the next five years will be about 5.5%.
According to Research Reports World, the global market of precious metals will reach a slightly more than $315 billion by 2030, with an average annual growth rate of 5.32%.
The silver rate is in a corrective corridor.
In terms of wave analysis, the silver price is forming a second descending wave on the hourly timeframe. The moving of the Stochastic Oscillator (standard values) went out from the oversold zone, indicating the completed formation of the last wave and the going to the third wave. The last impulse movement is ascending. Breaking through the top of the first wave at 24.20 will strengthen the price movement in the upward direction.
Signal:
The short-term prospects for silver are to buy.
The target is at the level of 24.75.
Part of the profit should be fixed near the level of 24.20.
The stop-loss is at the level of 23.20.
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.
