📈 SILVER // bull trend in sync across major timeframes
The expansion phase may accelerate the long trend.
Key Chart (Daily)
The trend has just become bullish across the monthly, weekly, and daily timeframes, however, the market is still in an accumulation phase.
Each dashed level represents an untested breakdown that requires attention from the buyers.
If the market transitions into the expansion phase, the Fibonacci target levels on the weekly and daily timeframes become valid targets.
Key Fundamentals
Summary
Silver has experienced significant price movements, driven by industrial demand, supply constraints, and macroeconomic factors. As of late January 2025, silver is trading at $33.88 per ounce, reflecting a 3% decline after a two-week rally that pushed it to nearly 13-year highs. Despite the recent pullback, silver has surged 40% over the past year.
Key Factors
Industrial Demand:
Silver is widely used in solar panel manufacturing and electronics, with industrial demand reaching a record 654.4 million ounces in 2023, marking the third consecutive year where demand outpaced supply (Investopedia).
Supply Constraints:
Global silver supply has struggled due to weaker mine production and labor strikes in major producing countries like Mexico. These disruptions have contributed to a supply deficit, further supporting higher prices (Wall Street Journal).
Investment Demand:
Economic uncertainties and lower interest rates have driven investors toward precious metals as safe-haven assets. The iShares Silver Trust alone saw $856 million in inflows, reflecting rising investor interest (Wall Street Journal).
Macroeconomic Factors:
The Federal Reserve’s recent interest rate cuts have increased the appeal of non-yielding assets like silver. Meanwhile, China’s increased investment in silver, partly due to gold import restrictions, has further bolstered demand (Wall Street Journal).
Actionable Insights
Bullish Case:
Continued Industrial Demand: With ongoing growth in renewable energy and electronics, silver demand is expected to remain strong.
Supply Deficits: Ongoing production challenges could sustain upward price pressure.
Bearish Case:
Economic Recovery: If the global economy recovers faster than expected, investor preference may shift away from safe-haven assets, leading to a price decline.
Interest Rate Increases: If central banks reverse course and raise interest rates, the appeal of non-yielding assets like silver could diminish.