Silver Price Resumes Upside, While Gold Consolidates After NFP
The bullish momentum in the Silver price has been causing the surge in the Gold price, with Silver XAG gaining around $2 or 10%.
The bullish momentum in the Silver price has been causing the surge in the Gold price, with Silver XAG gaining around $2 or 10% since bottoming out, while Gold XAU has gained around $200, which also accounts for around 10% of the value. Today though, Gold is stagnating after the surge following the Non-Farm Payrolls NFP report last Friday, while Silver continues to make gains.
Silver H4 Chart – XAG Remains Supported by MAs
The price of XAG has faced resistance at moving averages on the daily chart earlier this year, preventing it from surpassing the $23.50 mark. However, last week’s surge drove the price of silver above the daily chart’s moving averages, which opened the door for $24. That level was broken and now Spot Silver is close to reaching $25.
The weak economic data from the US suggests earlier interest rate cuts by the FED, which often leads investors to seek safe-haven assets like Gold (XAU) and Silver (XAG) as a hedge against economic uncertainty. So, the robust rally in Silver after Jerome Powell’s testimony last week suggests that investors are turning to precious metals as a safe-haven investment amid concerns about the economic outlook.
Economists Predict Increasing Silver Demand in 2024
Economists expect the surge in Gold prices to continue, especially as markets anticipate interest rate reductions to come in the following months. However, they believe that silver will outperform gold in the second half of the year. Spot silver prices have also been on the rise, increasing by 0.4% to $24.50 per ounce today. Last week, silver prices surged by more than 5%, reaching their highest level since late December.
Earlier this year, the Silver Institute reported that global silver demand is expected to exceed 1.2 billion ounces in 2024, marking the second-highest level on record. This bullish outlook for silver was further supported by the institute’s expectation of a “terrific year” for silver, as stated in a CNBC interview last month. The Silver Institute, a non-profit multinational organization representing various stakeholders in the silver industry, has provided a positive outlook for silver based on anticipated strong demand and market conditions.
Silver Live Chart
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