Silver’s weekly outlook

Silver has been in a major uptrend registering new highs from past 6 weeks after hitting a low of $15.675. Since then it has gained $1.804 incrementally over the weeks showing more solidarity over gold which is more volatile. Both the precious metals have been on a tear over safe haven buying broadly due to worries over U.S policies, global uncertainties and a weakening dollar, though gold had posted a negative weekly return in the same period where as silver was in a clear uptrend mounting week on week gains.
Demand for silver is also higher than gold because of its industrial usage.

On weekly charts-
Technically silver is in a bullish momentum with prices expected to test new highs due to fundamentals supporting the buying side.
A triangle is formed on the chart where the price might face a resistance at $18.070 (A) on the upside suggested by intersecting bullish/bearish ray-lines. Whereas metal should find short-medium term support at $17.200 (B). The metal has a big support at $16.100 (C) which may be tested if situations take a turn for the worse.
Overall the metal is trading with a positive bias and is expected to make new highs.



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