Silver continued its upward momentum last week, with prices approaching the key $24.50 level. The market seems poised for a bullish breakout, making any dips in prices potential buying opportunities for investors. The technical indicators also suggest further upside potential for silver in the near term.
One possible reason for the recent strength in silver prices could be the growing demand for safe-haven assets amid economic uncertainties. With the ongoing pandemic, geopolitical tensions, and inflation concerns, investors are seeking assets like silver as a hedge against market volatility.
Moreover, the dovish stance of central banks and the low interest rate environment are also supporting precious metals like silver. With interest rates expected to remain low for the foreseeable future, the opportunity cost of holding non-yielding assets like silver decreases, making them more attractive for investors.
Overall, the outlook for silver remains positive, and investors might consider adding exposure to silver in their portfolios as a diversification strategy and a potential hedge against market risks.