Gold and the Silver price have been surging in the last several trading days, as markets expect the start of rate cuts, which is driving cash from bonds to commodities like XAU and XAG. Gold pushed above $2,100 again yesterday while the price of Silver was heading for $24.

Silver Weekly Chart – MAs held As Support

A triangle is forming in Silver

On the weekly timeframe, the completion of a 50% retracement of the recent correction, along with support provided by the 200 moving average (purple) on the weekly chart, adds to the bullish sentiment. But it is a long way until the breakout above the trendline which starts back in 2020, and the formation of a bullish hammer candlestick pattern on the weekly chart further supports the bullish outlook. last week’s candlestick closed as a hammer, which points to a bullish reversal, and this week’s candlestick is already looking pretty bullish after the surge we saw in XAG/USD yesterday.

These technical signals suggest that silver may continue its upward trajectory in the near term. The monthly chart is also pointing to a bullish reversal in March, after the retreat in February, indicating potential upside momentum for Silver. Traders and investors will likely monitor these indicators closely for further confirmation of the bullish trend.

Silver Demand to Increase Further in 2024

Analysts forecast a 1-1.5% increase in global silver consumption, driven primarily by high demand in industrial demand and a turnaround in jewelry and silverware usage. Industrial demand, expected to surge by 4% to reach 690 million ounces in 2024, which is a new record, will be fueled by growth in the photovoltaic (PV) and automotive sectors. These industries are anticipated to be the primary drivers of increased silver consumption, reflecting the metal’s diverse industrial applications.

Gold Daily Chart – Will We See A New Record High?

Gold has seen a massive increase in demand since Friday

Silver Live Chart XAG