Silver prices continued its recent bullish move for the fifth consecutive week. Prices gained more than 3% on a weekly basis. Prices sparked to the new multiweek high wighted by the current economic jitters, global inflation worries and recession fears.
The white metal is currently at a nearly one year high touched last week. Prices break above 75175 that was the highest level since February 2021. Today, it is trading with a half percent gain at 74983.
Prices expect to continue to remain bullish following the above global jitters. Further, the global economy focus on transition to clean energy is creating an additional demand for silver, which is used in solar panels and EVs that will only grow in the future.
Just like gold, silver is used in jewellery. However, its demand in industry, where it is used six times more often than gold, creates a strong interest among investors.
According to Silver Institute research, 2023 will be the year of the biggest-in-decades deficit in the physical silver market. The easing of monetary policy by world central banks and the inflation slowdown support the fundamental growth of silver prices.
Technical View
Silver prices witnessed a significant gain since bottoming out on March 6 around the 61360 mark. As per our outlook released on 30 March 2023, proven accurate and prices hit both predicted levels 72500-72850.
A bullish continuation pattern was noted on the above intraday chart. Further, RSI 14 and its 9 SMA is treading on a positive zone both aspects still indicate bullish momentum.
A break above 75180 will open the door for next resistance 75950-76500 in near future. Else, any short term dip towards 73800-73700 will attract buying activities.
Crucial support is seen at 72500 and a break below only will expect to test 71500-70800.