Once ‘the most hated metal’, silver is now in an uptrend
The precious metal silver is seeing a strong start in 2019, with prices near their highest levels in almost six months. It is a great buying opportunity for investors now, metal analysts say.
Continued financial market volatility and a weaker US dollar should continue to support silver prices, according to Mike McGlone, senior commodity strategist at Bloomberg Intelligence.
He was cited by Kitco News as saying that silver’s weakness in the second half of last year was a “failed bear-market raid.” However, the metal’s resilience in the face of extreme weakness could mark a long-term bottom for the precious metal as buying momentum picks up.
The critical level investors should keep an eye on is $16.35 an ounce, McGlone said, explaining it as a long-term resistance level. On Thursday, silver was trading at $15.72 an ounce, up 0.44 percent.
“Silver is poised in 2019 to move above a resistance level that has held the market in check for three years, in our view,” the strategist said. “A primary companion of higher silver prices – a weakening dollar – is likely to join the recovery in gold and industrial-metals prices.”
Ira Epstein, director of the Ira Epstein Division of Linn & Associates, also said that he was bullish on the metal.
In a note to clients, he said that he sees a potential for silver to move higher through the year as it looks like the Fed will scale back its monetary policy tightening.
“As I see it, silver is now in an uptrend. Long positions are now warranted and should be held to as long as prices don’t close back under the 18-day moving average,” he said.
The expert said he was looking for initial resistance at $15.955, adding that with its current momentum, the metal has room to run to $17 an ounce.
Canadian investment bank and financial services provider TD Securities also sees silver prices pushing to $17 an ounce by the end of the year. It has projected silver outperforming the sister metal gold in 2019, adding that global demand for silver is expected to grow.
Silver disappointed many investors last year, becoming “the most hated precious metal” of 2018, according to precious metals analyst at Metal Bulletin Boris Mikanikrezai. He said the metal constitutes a long-term buying opportunity.
Source: RT
