Silver: Recovery continues despite lingering industrial risks – OCBC

A gain of nearly 5% put Silver ahead of Gold as a weaker USD and falling yields supported a recovery in precious metals, according to OCBC strategists Sim Moh Siong and Christopher Wong. They attribute the rebound to Silver’s greater sensitivity to monetary conditions and an earlier clear-out of positions. Despite improved sentiment, the bank cautions that a mixed outlook for industrial demand, particularly in photovoltaics, could constrain further gains unless USD strength and real yields ease further.

Silver’s outperformance faces industrial demand constraints

"Silver outperformed gold, gaining nearly 5% as the broader precious metals complex recovered."

"The rebound was likely amplified by silver’s greater sensitivity to changes in monetary conditions and reduced speculative positioning following October’s sharp correction."

"While the improvement in sentiment is encouraging, the industrial demand outlook remains mixed, particularly with continued thrifting and substitution in photovoltaic applications."

"Immediate resistance at 54.1/ 55.2 levels (23.6% fibo retracement of Aug high to Nov low), 57.40 (38.2% fibo). Clearing those hurdles cleanly may be needed for sentiment to stabilise. Support at 48 levels."

"Mild bearish momentum shows signs of fading while RSI rose."

"Further easing in USD strength and real yields could see silver extend its recovery alongside gold, although industrial demand concerns may temper the pace of gains."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Find out more.)