Silver: Recovery continues amid persistent industrial risks – OCBC

Silver gained nearly 5%, outperforming gold. According to OCBC strategists Sim Moh Siong and Christopher Wong, the advance came as a weaker USD and lower yields supported a recovery in precious metals. Silver’s greater sensitivity to monetary conditions and an earlier positioning washout helped drive the rebound. Despite improved sentiment, the bank cautions that an uneven industrial demand outlook, particularly in photovoltaics, could limit further gains unless USD strength and real yields ease further.

Industrial demand may curb silver’s outperformance

"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."

(An Artificial Intelligence tool helped create this article, which was reviewed by an editor. Learn more.)