💿Silver continues recovery

Silver follows other metals and brings more volatility to other markets

Silver is gaining over 0.6% today and the price is back above $ 22.5. The change may not be too big, but it is one of the biggest increases in today's session. Copper is gaining strongly, but volatility is much lower in other markets. In the case of indices and currencies, it rarely exceeds 0.2%. It is worth noting that the price of silver has clearly rebounded since the formation of the second low in the double bottom formation. Since then, silver has gained over 5%. Nevertheless, it is worth noting that silver and other precious metals did not impress this year. Bloomberg points out that silver was one of the worst metals to invest in, even though it is also recognized as an industrial metal. Industrial metals, on the other hand, performed really well.

Silver recorded a loss of around 15% this year. Industrial metals, on the other hand, were doing really well. At the same time, the 2-year volatility on silver shows that this metal still performs better than gold or the entire precious metals sector. Source: Bloomberg

It is also worth noting that silver, similiar to gold, is doing quite well in terms of seasonality at the end of the year. In previous years, we observed quite dynamic increases in the last week of December and at the beginning of the next year (mainly during the first week of January). Of course, historical volatility does not affect the current price behavior, but the end of the year is very specific in terms of investor behavior due to the holidays and limited volume.

Seasonality on silver at the turn of the year. Source: xStation5

Silver continues its upward movement and tries to close its divergence with gold. The key resistance is the downtrend line and the potential double bottom neckline around $25.50. Source: xStation5