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The price of silver (XAGUSD) is down nearly 2% today, a day after hitting a seven-year high of $30. The current decline is mainly due to the strength of the US dollar and profit taking. Silver isn’t the only metal in the green today. The price of gold is down from yesterday’s high of $2,077, while platinum and palladium prices are down nearly one percent.
Bank of America predicts the price of silver will climb to $50
Bank of America analysts are known for their ambitious goals. Just a month ago, they predicted that the price of gold would double to $3,000. At the time, very few analysts were so bullish on the metal.
And yesterday, a bank analyst predicted that the price of silver would jump to $50 if Joe Biden won the next election. It’s because of Biden’s plan to invest trillions in renewable energy.
If he did, it would lead to a high demand for silver, which is used to make solar panels. As a result, analysts estimate that annual silver demand would increase by 87% to 4,272 tonnes over the next 15 years. As a result, this would drive silver production into a deficit.
Recent polls suggest Joe Biden has the upper hand over Donald Trump.
See also
The United States is not the only country that would push silver prices higher. Take the European Union, which recently passed a massive $840 billion recovery fund. According to an analysis by Bloomberg, a substantial part of this money will go to renewable energy, which could lead to an increase in demand.
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Silver Price Prediction
The price of silver is trading at $28.27, a few points below yesterday’s high of $30. The monthly chart shows that the price of silver has been rising for the past five consecutive months. Moreover, the price broke above the 50% Fibonacci retracement level. This retracement connects the April 2011 high to the 2002 low. Additionally, the price of silver is above the 50 and 100 month moving averages. Therefore, I suspect that the price will continue to rise as the bulls try to mark their authority above $30.
On the other hand, a move below $21 will invalidate this trend. This price is located along the 61.8% Fibonacci retracement level.
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XAGUSD Outlook
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