Silver (XAGUSD) has soared to the highest point since March amid a rise in prices of precision metals. Currently silver has been trading +0.25% this morning.
Now, this technical view is supported with FED`s decision to live interest rates unchanged, and with ECB`s President significant dovish comments.
Note this – FED didn`t rule out rate cuts in the future!
The question remains, when is the right time to pick up those profits? How high can silver go?
Well, we might not have all the answers, but we do know this:
The correlation is simple – one of the essential components in the making of solar panels is silver. Silver forms the core of the design.
Silver has the maximum thermal and electrical conductivity among all metals. Therefore, with increasing demand for solar panels silver prices should be affected in the future.
Weak US data and rising geopolitical tensions in the Middle-East will also continue to support the safe-haven appeal for the metals.
Additionally, China is aggressively buying silver (for industrial usage), and most of the investors now are expecting a rate cut by the FED to happened soon. So, lower interest rates reduce weigh on the dollar.
The conclusion may be that the prices of silver could continue to move higher in the short term.
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Source, charts by TeleTrdaer & MT5