Silver, the precious white metal, seems to be getting its sheen back. The upward growth of 15% in the past three weeks, has proved to be the metal’s best performance ever as of date. The metal seems to have hit a high and a plateau in the first week of November.
However, technical experts are quite positive, that silver will resume its growth path in the days to come. It is expected that it will cross the $21per lb mark and might even reach $24 per lb. That will be quite a feat that remains elusive after April 2022.
Silver seems to be located at a turning point, which will be impacted by China’s stance on the removal of restrictions due to the pandemic. If the news regarding China’s easing of restrictions is confirmed, manufacturers are certain that silver will get a huge boost. China is the largest consumer of silver, for its solar panel plants.
According to reports, China has been the largest consumer of silver in the last decade. For the unversed, it happens to be the key component in solar panel’s photovoltaic cells. And it is one of the primary sources of renewable energy across the globe. Every solar panel uses at least 20 gms of silver. Moreover, considers being a major component in batteries, photography, and in the field of dentistry.
If China’s drops its restrictions, the rise in demand will likely lead to an increased valuation of the white metal. In the last few years, the whole situation has been bland, especially due to the pandemic induced restrictions. Investors are now quite hopeful of President Xi’s new stance to revive the economy after the entire world has moved on with the pandemic.
Moreover, all the business owners are keeping an eye on the new laws that President Xi comes up with in his third term.
Technical Analysis on Silver Futures
Currently Silver Futures trading above $21.30. From the last few days, it is in the positive direction and shows strength on the monthly chart.
If the silver future settled above $21.30 then we will see the rally up to $24.
A trader can take a chance to buy Silver Futures at $20.80, and there will be a stop loss of $18.00. Target looks $24.50 and then to $28.00