Silver showed a minor pullback on industrial demand optimism. It hit a high of $33.39 and is currently trading around $32.44.
Silver's Vital Role in 5G Technology
Silver is a central component of 5G technology, as it is an essential material applied in semiconductors, electrical contacts, MEMS, cabling, and IoT devices. As 5G deployment accelerates, the demand for silver is anticipated to increase more than twice, growing from 7.5 million ounces (Moz) to approximately 16 Moz by 2025 and up to 23 Moz by 2030.
Factors Driving Silver Demand
This is up 206% and is driven by growing demand for semiconductor ICs/chips, memory, passive components, cabling, power distribution, IoT devices, and MEMS sensors. Global expansion of 5G and IoT connectivity necessitates a broad array of sensors, communication, tracking, and monitoring devices many of which use silver. Outside of 5G, silver demand is also influenced by solar power expansion, electric vehicle expansion, and general investment demand
Trading Strategy and Key Levels for Silver
The commodity is trading above short term (34 and 55 EMA) and long-term moving average (200- EMA) in the 4-hour chart. The near-term support is around $31.80 and any violation below will drag the commodity to $31.25/$31/$30/$29.60/$29/$28.40. The immediate resistance is at $32.50 any breach above targets $33.50/$35.
It is good to buy on dips in the $32 range, setting a stop-loss at $31.25 and targeting a price of $33.50.


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