Page 27 - Bullion World Volume 4 Issue 4 April 2024

Bullion World | Volume 4 | Issue 4 | April 2024

Further upside in Silver

Mr Smit Rajesh Bhayani, Research Analyst

The market is currently projecting that the United States
would lower interest rates in June 2024, which is when
the gold price surge began. One significant resistance
level, $2,080/-per ounce, was broken by the Comex
gold prices at the end of February 24, which caused the
prices to soar even higher. In the midst of geopolitical
unrest, demand for safe haven assets and positive U.S.
economic statistics helped to sustain gold prices. Silver
prices are still not rising to their full potential in relation
to gold prices. Since silver's fundamentals are stronger
compared to gold, its potential for a rally this year is
significantly greater than that of gold prices.

In the recent several sessions, silver prices have
increased by about $2, mostly due to the possibility of a
US interest rate cut. This occurred as a result of lower-
than-expected consumer sentiment and the PCE index
for February coming in line with forecasts. The demand-
supply situation also encourages a further increase in
silver prices.

Since silver is lagging behind the industrial metals, it is
performing poorly. China's aggressive silver purchases
should intensify in order for silver prices to soar even
further. The fundamentals of silver are far better to those Mr Smit Rajesh Bhayani
of gold. Silver has a far larger surplus-deficit than gold,
which makes it much more appealing. The deficit market
for silver has been growing over the past two years,
which will eventually result in higher prices.

Source: NB Research, the Silver Institute

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