Source: Golden Ten Data
Over $400 million in big orders poured in! Silver has hit a new high in more than 30 years, and will the 50 mark also become something that many have in their pockets?
Before the US market on Friday, the price of silver surged after the influx of large orders. Spot silver reached the $30 mark. The intraday increase reached 3%, a new high since February 2013. Spot gold stood at 2,400 US dollars/ounce, the first time since April 19, with an intraday increase of 1%.
COMEX's most active silver futures contract instantly traded 845 lots within one minute from 20:51 to 20:52 Beijing time on May 17, with a total trading contract value of US$128 million;
COMEX's most active silver futures contract instantly traded 627 lots within one minute from 20:46 to 20:47 Beijing time on May 17, with a total trading contract value of US$95 million;
COMEX's most active silver futures contract instantly traded 714 lots within one minute from 20:43 to 20:44 Beijing time on May 17, with a total trading contract value of US$108 million;
COMEX's most active silver futures contract instantly traded 1,014 lots within one minute from 21:00-20:02 Beijing time on May 17, with a total contract value of US$155 million.
Kinesis Money market analyst Frank Watson said, “Signs that inflation may be slowing have raised the possibility of interest rate cuts in the coming months, which will often support gold and silver prices.”
Earlier US data showed that consumer price growth slowed in April, increasing the probability that the Federal Reserve will cut interest rates as early as September. According to the Federal Reserve's observation tool, investors expect the Fed to cut interest rates twice this year by 25 basis points each time, possibly in September and November, respectively.
Meanwhile, China's industrial value added increased 6.7% year-on-year in April, exceeding expectations of 5.5%. The improvement in industrial activity is an important indicator that the Chinese economy began to recover properly in the second quarter, which may boost expectations that Chinese demand will continue to be strong. China is the world's largest consumer of gold, and China's growing PV installed capacity is the main driving force behind the increase in demand for silver. In this context, the silver market will enter its fourth shortage year, and this year's supply gap is considered the second-largest in history.
Fxstreet analysts said that silver's breakout of $30 confirmed the bullish sentiment. Its price is likely to return to its peak in 2011, and the current level above $50 per ounce is a long-term target worth considering. As far as gold is concerned, after breaking through $2,400 per ounce, the price of gold is more likely to rebound to the next resistance level of $2,417 per ounce (April 19 high), followed by an all-time high of $2,430 per ounce.
Although the record rise in gold prices this year made headlines, silver actually rose even more and faster. Since this year, the price of silver has soared 28%, surpassing that of gold, making it one of the top performing major commodities this year. However, according to the price ratio of gold to silver, silver is still relatively cheaper. Currently, it takes about 80 ounces of silver to buy 1 ounce of gold, compared to the 20-year average of 68 ounces.
InvestingHaven, a well-known investment agency, predicts that the price of silver may reach $34.70 per ounce in 2024, and may reach 48 US dollars/ounce between mid-2024 and mid-2025. J.P. Morgan predicts that the price of silver may follow the strong trend of gold prices. The average price for the fourth quarter is expected to be around $30 per ounce.
Jateen Trivedi, vice president of research at Indian brokerage firm LKP Securities, said that demand for silver remains strong, especially in the electric vehicle and photovoltaic industries, as the consumption of electric vehicles continues to rise, driving a bullish trend in the silver market.
Editor/jayden