Silver has reached its local lows. Over the last couple of days, reversal candles with large shadows from below were formed on the daily timeframe. This suggests a trend reversal is imminent. Gold has also reached its main support levels. Significant drivers are needed to go lower, and currently, they aren’t observed.
Many analysts are talking about positive prospects for silver holders. However, their opinions about buying the metal are reserved now, as there is resistance in the form of continued tightening of central bank policies in the short term.
An important factor for silver appreciation is the growing demand from solar panel manufacturers. According to Solar Power Europe, the forecast of installed solar capacity for the coming years has been raised by 40-50% from the 2021–2022 figures.
As per analyst BMO Capital, the metal is expected to rise closer to the beginning of 2024. Then the prospects of easing the monetary policy of the Fed and other central banks will become clearer. Demand for safe-haven assets will decrease, and the industry will be active At that point, silver's price performance could significantly outperform gold.
We agree with analysts who expect a recession in the global economy after the rate hike cycle.
According to Gold Newsletter editor Brian Lundin, the Fed will trigger a financial crisis with its actions soon. This will be the starting point for the growth of gold and silver prices.
The expert believes that it is impossible to go from zero interest rates to one of the toughest cycles of monetary policy increases in history without hurting the economy. The next crisis will be a growth driver for precious metals.
According to technical analysis, reversal candles have formed on a daily timeframe. The RSI indicator bounced upwards from the oversold level today. Moving to the 1-hour timeframe, we will see that the downtrend has been broken, which means that the upward movement may continue.
The growth target will be $23. The last attempt of metal growth was suspended here. A stop-loss will be placed at a decrease to 22.48. In this case, there will be a return to the downtrend. Also, just above this level was an extreme attempt to move quotations downward.
Increase in silver:
Take profit — 23.00
Stop-loss — 22.48
This content is for informational purposes only and is not intended to be investing advice.
