Ned Davis Research forecasts higher silver prices as market sentiment recovers

With global economic fears receding, demand for precious metals remains subdued. But as Ned Davis Research points out, shifting investor sentiment toward silver could spark fresh upward momentum in its price.

Silver continues to lag behind gold’s rally as investors flock to traditional safe havens amid trade uncertainty, while industrial demand for the white metal is weakening.

Despite its attempts to hold above $33, silver remains oversold relative to gold, says Matt Bauer of Ned Davis Research. The firm's data shows sentiment regarding the metal hit a decade low earlier this month. While the situation has since improved, silver sentiment has not yet cleared the neutral hurdle.

Bauer suggests the precious metal could draw some strength from ongoing global trade tensions, with a significant rally expected once the situation stabilizes. Another factor driving silver prices higher will be the anticipated Fed rate cut.