Latest data set from China suggested that demand for silver has improved. Remaining a net importer, imports fell just -3% Y-Y to 304 metric tons while exports fell about -10% Y-Y to 61.5 metric tons. Overall, industrial demand for silver remains weak as the semiconductor billings data signaled that shipments in Europe and US despite recovery in China and Japan.
A further rise in silver will continue to be driven by ETF demand. Concerns over inflation and currency debasement have driven capitals to the precious white metal as a cheaper alternative of gold.
- Further reading: Why jewelry buyers now shy from gold?
Reversal signal could pop up as gold approaches $37.58. A break of $32.72 will be the first signal of a near term reversal and turns the focus back to $30.195 the next support mark.
As long as the key resistance of $37.58 holds, price actions from $26.105 are viewed as a consolidation pattern. This means the down trend from $49.82 high is not over, and a new low below $26.105 is favored. A clear break of $37.58 dampens this bearish POV, and could bring stronger raise back to the high of $49.82.
In the long run, the $49.82 level could be a medium or long term top for silver. With 61.8% Fibo retracement of 8.4 to $49.82 at 24.22 intact, price actions from $49.82 could eventually turn out to be a consolidation, and a break of the key resistance $37.58 will increase the odds of a new high above $49.82 sooner rather than later.
After a short rebound last week, the Gold/Silver ratio resumed its decline. Silver has performed the best from the precious metals complex so far this year. The white metal has gained +23.9%, compared with platinum’s 18.4%, gold’s +13.2% and palladium’s drop of -2.78%.
*Further Reading:
- Top Rated Books for Silver Traders Review
- Top Rated Books for Gold Traders Review
- Social Media for Stock Market Traders
