Silver regains its lost narrative and breaks record levels again

An analysis showed that silver prices witnessed a sudden price explosion, which restored enthusiasm to traders who had successfully bet on a rising wave last year before the bubble burst in late January.

The analysis said: Since then, the metal has made a strong recovery; It rose by 15% in the last week, bringing its return since the beginning of the year to about 20%, although it is still trading more than 150% above last year’s levels.

The highest level in two months

According to the analysis, the pair touched Silver/the dollar reached its highest level in two months, approaching $88 earlier today, continuing last Monday’s gains, which amounted to 7%, before declining partially with the pressure of rising oil prices that raised bond yields and the dollar.

He stated that, however, this move succeeded in changing the short-term technical landscape, and the breach of the resistance area at $82-83 led to attracting new purchasing flows from hedge funds and investors relying on Momentum.

Modi’s Call

According to the analysis, this move also reflects the superiority of silver in terms of its high sensitivity compared to gold. While GoldFor stability, its appeal was recently affected by Indian Prime Minister Narendra Modi’s call on citizens to stop buying gold for a year to ease pressure on foreign exchange reserves and the rupee, which is facing weakness against the dollar.

This development pushed the gold ratio to Silver fell sharply to around 55, the lowest level since early March, highlighting the outperformance of silver. At the same time, gold remains locked in a consolidation range with support at $4,500 and resistance at the 50-day moving average near $4,757.

Industrial Sector Support

The analysis pointed out that apart from technical breakthroughs, silver derives strong support from the recovery of the industrial metals complex; Copper futures recorded record levels in New York and London, driven by strong Chinese demand and declining inventories.

As a basic metal in… "Energy transformation" (It recently entered the list of critical metals in the United States), silver benefits from the same structural drivers as copper, especially in the electricity, renewable energy, artificial intelligence infrastructure, and automotive industries.

The analysis indicated that the ongoing turmoil in the Strait of Hormuz has added an additional layer of uncertainty, raising energy and shipping costs, and enhancing fears of resource scarcity and inflation.

Supply Deficit Expectations

The analysis indicated that, fundamentally, silver remains supported by expectations of an annual supply deficit. Supply, at a time when real and investment demand remains strong, especially in China.

The analysis stated that it is important to note that silver mine supplies respond slowly to high prices, because most of the global production comes as a byproduct of lead, zinc, copper and gold mining.

Conclusion for the investor

The analysis prepared by Ole Hansen, head of commodity strategy at Saxo Bank, added that after this violent rise, the market now needs confirmation that this breakthrough "It will last". Maintaining levels above $82-83 will encourage more systematic buying.

Silver recovered "Her narration" What was missing at the start of the year: a market supported not only by demand for precious metals and geopolitical hedging, but increasingly by structural industrial demand at a time when global supply growth remains limited.

Today traders will be watching the US consumer price inflation report for April, which may provide a new direction soon, with headline inflation expected to slow to 3.3%.

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