Earlier, we wrote that gold had resumed its recovery. The recovery has been due to a weaker US dollar and as the likes of the ECB and BOC joined some of the other major central banks in turning dovish again last week, this helped to underpin low- and noninterest-bearing assets as bond yields fell. Silver has risen for more or less the same reasons, although this metal has also found support from commodities being firmer across the board with crude oil hovering near this year’s earlier highs and copper holding its own above a key support level.
As far as silver is concerned, well it has created a number of bullish-looking price candles on its daily chart, but like gold it remains bang in the middle of a neutral zone right now. We are watching metals prices to see if there will be any significant technical developments over the coming days, due to the above fundamental reasons. But with the key support area between $14.80 and $15.00 being defended last week, and with price remaining above long-term support at $14.00, the path of least resistance is to the upside for silver. Thus, we could soon see new yearly highs for silver.
Source: TradingView and FOREX.com.