Silver $SLV is trading within an uptrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u... as of December 26, 2022. A Resurrection CrossWhen the 50 day moving average crosses above the 200 day moving average, it is called a Resurrection Cross. Conversely, when the 50 day moving average crosses below the 200 day mov... (50 day moving average (blue line) crossing above 200 day moving average (red line)) appears to be imminent. The Resurrection Cross could happen as soon as next week.
Fundamental Drivers For The Price Of Silver
The Fed’s interest rate hikes should come to an end, and subsequent expectations of interest rate cuts should help silver prices. As a precious metal with significant industrial use, silver should additionally benefit from the anticipated economic recovery following the end of the recession. Since China is the world’s largest consumer of silver, the relaxation of corona restrictions in that country should help to further increase silver demand.
By mid-November 2022, there was a 16% increase in the demand for silver globally, and there was a limited supply. This year, the physical silver market is anticipated to experience its largest supply deficit in decades. This is anticipated to total 194 million ounces (6 000 metric tons), meaning that demand will be about 20% higher than supply. This is being driven by a record-breaking 16 percent increase in silver demand.
In 2022, the industrial demand for silver reached a record high of 539 million ounces. Energy security is a major concern for many nations, and this year’s record-breaking solar panel installations have led to a surge in demand for silver.
The automotive industry, especially the electrification of vehicles, also contributed to increased demand. The average amount of silver in each car is rising.
Gold/Silver could see ‘Goldilocks conditions’ in 2023, strategist says
