Silver prices have been on a winning streak this year, outshining gold and delivering impressive returns for investors. With a year-to-date return of around 36%, silver has proven to be a lucrative investment compared to gold’s 32% return over the same period.
The surge in silver prices can be attributed to a surge in demand driven by its increasing use in technology production, electric vehicles, and renewable energy solutions. As a result, silver has seen significant gains in recent years, with returns ranging from 4.68% in 2022 to a high of 46.86% in 2020. Despite some losses along the way, silver has managed to rise by a whopping 89% since 2019.
Silver (XAG/USD) Performance 2019-2024 YTD
Looking at the fundamental picture, the gap between global supply and physical demand for silver remains wide, indicating a positive outlook for the metal. If demand continues to outpace supply as expected, silver prices are likely to continue their upward trajectory.
On the technical side, silver may face some short-term volatility due to the ongoing US election and the upcoming Federal Reserve meeting. However, a close above the key support level of 32.60 could signal a renewed upward momentum for silver prices.
Technical Analysis Silver (XAG/USD)
From a technical standpoint, silver recently experienced a pullback as the US Dollar strengthened. However, the key support level around 32.20 could provide a platform for silver to push higher. A break above 32.60 would indicate a change in market structure, potentially leading to further gains towards the 34.00 handle.
Alternatively, a break below the support levels could lead to a deeper pullback towards the 31.34 and 30.65 marks. Overall, silver’s performance remains promising, with potential for further upside if key levels are breached.
Silver (XAG/USD) Four-Hour (H4) Chart, November 5, 2024
Despite short-term uncertainties, silver’s long-term outlook remains positive, making it an attractive investment option for those looking to capitalize on the metal’s growing demand and potential for price appreciation.
Source: TradingView