Silver Prices Surge to 10-Year High as Safe Haven and Industrial Demand Rise
Silver prices have surged to their highest level in over a decade, reaching $48.3 per ounce on Tuesday. This rally reflects silver's strong performance among commodities this quarter, driven by its dual role as an industrial and safe haven metal.
Technical indicators show a bullish trend for silver. Moving averages across 20, 50, and 100 periods remain aligned, indicating a strong continuation of the current trend. Silver's 20-period EMA at $47.99 and Supertrend indicator at $47.06 have provided dynamic support during this uptrend, which began in mid-September and is currently within a rising parallel channel.
Analysts, such as Jörg Schulte of JS Research GmbH, note that lower interest rates enhance silver's appeal. The ongoing U.S. government shutdown and expected Federal Reserve rate cuts have led investors to buy safe haven assets like silver. A decisive close above $48.60 could trigger a breakout toward the key $50 psychological level. Support for silver rests at $47, with deeper support at $45.35.
Silver's price has reached its highest level since 2011, driven by robust industrial demand and its safe haven status. The Silver Institute projects a fifth consecutive annual supply deficit in 2025, further supporting silver's bullish outlook. Despite the recent rally, silver remains supported at $47 and $45.35, providing opportunities for investors to enter or add to positions.
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