Silver Analysis as Election Uncertainty Looms
The US election is scheduled for November 5, generating significant market uncertainty. This uncertainty supports silver (XAG) prices in the near term. Historically, Silver acts as a second safe-haven asset during political and economic instability. The growing concerns over fiscal deficits, geopolitical tensions, and monetary easing policies have driven investors to use Silver for protection. Recently, the Silver price hit the minor resistance area of $33.50 and started to correct lower.
The increase in Silver production from mining and higher recycling levels are expected to increase supply. Additionally, Silver demand from jewellery and coins has declined due to high prices, reducing physical demand in the market. On the other hand, the silver (XAG) market remains strong after breaking $32.50. This breakout has taken the silver prices to the resistance zone around $34.80. Silver continues to be in demand in the industrial sector, driven by technological innovations and energy needs.(Cay)
Source : Fxstreet