China's role in silver demand continues to be extremely important
China's economic policy can have a significant impact on the immediate trends of silver. This country is a major consumer country of industrial metal, including silver, which is essential for production of electronics and solar panels. Specifications on the possibility of tariff reductions and the increase in infrastructure expenditures are increasingly optimistic, but there is no specific policy announcement.
If the Chinese government has a more palliative attitude, silver may benefit from industrial demand. Until then, traders are likely to continue their cautious posture, as the delay in policy clarity may pressure the centment.
Gold Larry supports silver, but will be delayed
The rise in gold at a record high of $ 2,790.17 highlights the common fundamentals of precious metals. Currently the lowest US dollar and the decline in US Treasury yields, which are currently low in a month, promotes the rise of gold, indirectly supporting silver. Last week's 1.77 % of the dollar has created a preferred environment for both metals, as the dollar has reduced the appeal of the dollar for foreign buyers.
However, silver does not reflect the momentum of gold. A double role as a safe shelter and an industrial metal means that it depends on the world economic activity. Inflation's concerns and the federal preparation system Board of Directors' expectations have risen rapidly, while the rise in silver has been further suppressed without significant boosts due to industrial demand.
Market outlook: Silver requires a catalyst
Silver is still in a position to rise, but to overcome resistance requires a clear catalyst. If the price can be determined by a sustainable volume of $ 31.00, this metal may be targeted at $ 31.81 and $ 32.33. Support factors include the depreciation of the dollar, the pigeon policy of the Fed, and the possibility of increasing demand in China.
Traders need to watch China's trends, as policy changes can activate industrial demand and increase silver prices. The strength of gold continues to provide indirect support, but silver short -term outlook depends on whether these support conditions can be reduced from precious metals.
