Can Silver continue its 20% run higher?

By Admiral Markets

While momentum in most asset classes has waned during the second quarter, silver prices have been steadily rising over the past month.

Around 50% of the demand for silver comes from the industrial sector, with the rest from investors.

This helped silver to outperform gold over the pandemic with many analysts forecasting higher prices.

Source: Admirals MetaTrader 5 Web, SILVER, Weekly – Data range: from Aug 12, 2012, to May 13, 2021, performed on May 13, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

The long-term price chart of silver shows a strong break from technical resistance during August 2020 around the ~$21.68 price level.

Since then, the price of silver has ranged in between horizontal support and resistance on the weekly chart, as well as the daily chart.

Source: Admirals MetaTrader 5 Web, SILVER, Daily – Data range: from Jun 24, 2020, to May 13, 2021, performed on May 13, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

On the daily chart, the price has recently bounced from circa. ~$24.00.

If the trend can continue higher towards the next major swing high just below ~$30.00, it will represent a near 20% push higher.

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By Admiral Markets