Silver Price Set for Further Gains, After Finding Support at MAs

The silver price has been retreating since early December, but it is finding support at MAs once again and is starting to rebound this week. Analysts are predicting the price to continue making higher highs in 2024 as the demand is expected to remain high.

This year’s outlook for silver appears bullish, with prices potentially reaching a decade-high. Silver prices received a boost yesterday as US Treasury bond rates fell following the disappointing US January retail sales data, which makes non-interest-bearing assets like Silver more attractive to investors. The likelihood of the Federal Reserve cutting interest rates has increased, with market observers now expecting a 100 basis point reduction.

This expectation has bolstered demand for safe-haven assets like Gold and Silver. So, Silver has been in control in the last two days and it rose around $1. But traders are facing moving averages on the weekly chart, which serve as resistance levels for Silver. However, chances are for a potential breakout to the upside. XAG/USD closed the day below $23, showing a gain of over 2.50%, indicating bullish momentum in the market.

Global Demand Set to Rise

Silver has come back to the forefront in recent decades as the electric auto industry grows, therefore the demand for this year is projected to reach 1.2 billion ounces, which would be close to record highs regarding Silver demand. There are other factors driving the demand for the precious metal as well, but the particularly increased industrial usage of the metal is the main driver. Silver is widely used in industrial applications besides the automotive sector, such as in manufacturing, solar panel production, jewelry making, electronics etc. The industrial sector is expected to contribute significantly to the overall demand for silver this year. Silver analysts highlight the positive outlook for silver based on factors like industrial offtake and overall global demand trends.

Silver Live Chart XAG