Silver is above the EMA200 and EMA50 on the 4-hour timeframe and is moving within its medium-term descending channel. If a valid trendline break or bullish correction is observed, silver can be re-sold and followed to the specified support level.
Looking ahead, analysts predict that rising economic uncertainty will drive stronger investment demand in Western markets. In recent weeks, consumer sentiment has dropped to its lowest level in years, while concerns over inflation have intensified.
Experts argue that stagflation provides an ideal environment for gold, as the precious metal is widely regarded as a safe-haven asset during economic instability.Additionally, higher inflation leads to lower real yields, reducing the opportunity cost of holding gold, which does not generate interest.
Major investment firms, including WisdomTree and Goldman Sachs, believe that despite the possibility of short-term corrections, gold remains on track to reach $3,000 per ounce this year.
In another indication of investor sentiment, analysts at BMO Capital Markets reported that gold and copper were the most discussed commodities at their exclusive mining industry conference. Interestingly, silver ranked as a “distant third” in terms of interest. While downside risks for gold still exist, focusing on the long-term outlook remains crucial.
Daniel Ghali, a senior commodities strategist at TD Securities, stated that gold is in a unique position where it can appreciate regardless of the U.S. dollar’s performance. Meanwhile, silver’s physical supply flows and structural deficit could make it a long-term winner in the market. Ghali also noted that even as Washington considers devaluing the U.S. dollar to enhance export competitiveness, the currency’s strength is actually supporting higher gold prices.
He remarked, “What’s fascinating about this gold rally is that, contrary to conventional wisdom, I genuinely believe a strong U.S. dollar has contributed to gold’s price increase.” He added, “One of my core beliefs is that market anomalies can teach us invaluable lessons.”
According to Ghali, gold’s exceptional performance last year was highly unusual. He explained, “Gold managed to rally even during periods of rising U.S. interest rates and a strong dollar.” He also pointed out that historically, gold has only twice exhibited such strong performance alongside a robust S&P 500 index. The first instance was in 1933, when the U.S. government revalued gold, and the second occurred in 2009, during the most significant round of quantitative easing (QE) policies.
He emphasized that gold has never sustained such a strong uptrend without a concurrent bearish market for the U.S. dollar. Ghali concluded, “Clearly, gold’s price strength represents a market anomaly, and I believe this sends a message to those willing to listen.”
Regarding silver, Ghali argued that the metal is no longer seen as a lesser counterpart to gold. He said, “Silver has a truly unique narrative. We are now entering the fifth consecutive year of a structural deficit. The imbalance between supply and demand is unprecedented, primarily driven by surging demand, particularly in the global solar energy sector.”
He continued, “Silver’s situation is different because we are transitioning from a demand surge to a liquidity crisis. The physical pull of silver from London to the U.S. has been so intense that it has placed enormous strain on the world’s largest bullion storage system, disrupting daily physical market trading.” He added, “We believe this situation could worsen, ultimately requiring higher silver prices to incentivize the return of supply from unconventional sources to London.”
Looking ahead, analysts predict that rising economic uncertainty will drive stronger investment demand in Western markets. In recent weeks, consumer sentiment has dropped to its lowest level in years, while concerns over inflation have intensified.
Experts argue that stagflation provides an ideal environment for gold, as the precious metal is widely regarded as a safe-haven asset during economic instability.Additionally, higher inflation leads to lower real yields, reducing the opportunity cost of holding gold, which does not generate interest.
Major investment firms, including WisdomTree and Goldman Sachs, believe that despite the possibility of short-term corrections, gold remains on track to reach $3,000 per ounce this year.
In another indication of investor sentiment, analysts at BMO Capital Markets reported that gold and copper were the most discussed commodities at their exclusive mining industry conference. Interestingly, silver ranked as a “distant third” in terms of interest. While downside risks for gold still exist, focusing on the long-term outlook remains crucial.
Daniel Ghali, a senior commodities strategist at TD Securities, stated that gold is in a unique position where it can appreciate regardless of the U.S. dollar’s performance. Meanwhile, silver’s physical supply flows and structural deficit could make it a long-term winner in the market. Ghali also noted that even as Washington considers devaluing the U.S. dollar to enhance export competitiveness, the currency’s strength is actually supporting higher gold prices.
He remarked, “What’s fascinating about this gold rally is that, contrary to conventional wisdom, I genuinely believe a strong U.S. dollar has contributed to gold’s price increase.” He added, “One of my core beliefs is that market anomalies can teach us invaluable lessons.”
According to Ghali, gold’s exceptional performance last year was highly unusual. He explained, “Gold managed to rally even during periods of rising U.S. interest rates and a strong dollar.” He also pointed out that historically, gold has only twice exhibited such strong performance alongside a robust S&P 500 index. The first instance was in 1933, when the U.S. government revalued gold, and the second occurred in 2009, during the most significant round of quantitative easing (QE) policies.
He emphasized that gold has never sustained such a strong uptrend without a concurrent bearish market for the U.S. dollar. Ghali concluded, “Clearly, gold’s price strength represents a market anomaly, and I believe this sends a message to those willing to listen.”
Regarding silver, Ghali argued that the metal is no longer seen as a lesser counterpart to gold. He said, “Silver has a truly unique narrative. We are now entering the fifth consecutive year of a structural deficit. The imbalance between supply and demand is unprecedented, primarily driven by surging demand, particularly in the global solar energy sector.”
He continued, “Silver’s situation is different because we are transitioning from a demand surge to a liquidity crisis. The physical pull of silver from London to the U.S. has been so intense that it has placed enormous strain on the world’s largest bullion storage system, disrupting daily physical market trading.” He added, “We believe this situation could worsen, ultimately requiring higher silver prices to incentivize the return of supply from unconventional sources to London.”
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.