Silver stabilized near one-month highs ahead of the U.S. Federal Open Market Committee (FOMC) meeting scheduled for November 1.
At the moment, U.S. bond yields have fallen from their peaks, but still remain high. Last week, the benchmark 10-year bond rate stood at 5.02%, the highest level since 2007. The rate subsequently fell to 4.80%.
Rising government securities yields contributed to the strengthening of the U.S. dollar. Despite the increase in the U.S. currency, the value of gold and silver continued to gain momentum.
The white metal also acts as a safe haven asset against the background of the instability in the Middle East. A market research and competitive intelligence provider agrees with this assertion. Fact.MR has published the results of its latest research. According to the forecasts of the organization's specialists, the global precious metals market is expected to reach a valuation of $445.76 billion by 2033. It will grow at a rate of 6.2%.
Precious metals such as gold, silver, platinum, and palladium have traditionally been considered safe-haven investments, but current market conditions have increased the value of these assets. In an era of economic turbulence and uncertainty, precious metals are becoming a popular means of financial security.
Fact.MR also notes that institutions such as central banks and huge investment funds are progressively diversifying their portfolios, with precious metals driving market growth. This move not only demonstrates their rising confidence in the long-term value of certain metals but also fuels the demand for precious metals.
Further dynamics of silver will depend on the results of the FOMC meeting on Wednesday. Investors expect the U.S. Federal Reserve (Fed) interest rate to remain unchanged. However, the subsequent speech of Fed Chairman Jerome Powell may provide a certain boost to the precious metals prices.
Silver prices are forming a new uptrend on the H4 timeframe.
In terms of wave analysis, the silver price is currently forming the third ascending wave. Breaking through the top of the first wave at the level of 23,700 will strengthen the price movement towards growth.
Signal:
Short-term prospects for silver suggest buying.
The target is at the level of 25,000.
Part of the profit should be taken near the level of 23,700.
A stop-loss could be placed at the level of 22,000.
The bullish trend is short-term, so trade volume should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
