The ongoing volatility in the world’s stock market has led to an opening in safe havens. Bonds have risen as traders move to safety. The same is true with gold, Swiss Franc, the US dollar, and the Japanese Yen. In the past week, gold has had six consecutive days of gains. As this has happened, silver – gold’s poorer cousin – has followed the same trend. It has gained from $13.89 to a high of $14.40.
As you know, silver is a precious metal found deep within the earth’s crust. Unlike gold, silver has major industrial uses, with most of it being used in the cutlery industry. It is also used in the manufacture of coins. However, with more people moving to digital money, the role of coins has continued to decline. Gold on the other hand has no major industrial uses. Most of it is used for investment purposes.
Silver has reached $14.40 per pound. This is a significant price compared to the $13 it was a few weeks ago. The double exponential moving averages show that the pair may be moving up. This is confirmed by the Relative Strength Index (RSI), which is at 60 and headed higher. In the short term, the price will likely continue moving higher. If it does, it will likely test the important resistance level of 14.60. The upward momentum will likely accelerate if the US president and his Chinese counterpart reach an agreement in the next week’s meeting in Argentina.