Silver price trades higher for the sixth consecutive trading session as the bullish momentum for silver accelerates above the 200-day moving average. Many analysts believe that the recent rally in silver prices is due to rising demand for physical silver.
One of the most important industrial uses for silver, except electronics, is in photovoltaic cells, which are the major component of solar panels. Silver is a critical part of PV cell manufacturing, where they form a conductive layer on both the front and rear sides of silicon solar cells. The World Bank forecasts that by 2050 the silver consumption in energy might grow to 50% of today’s silver demand.
The silver price rose to the highest level since February 25 as the silver price has gained over 62% since the March lows. The reopening in economies around the globe boosts investor’s sentiment and the demand for silver increases.
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Silver Price Analysis
The silver price is 0.14% higher at $18.24 as the price looking for an extension above $19 as the rebound from March lows continues. The silver has entered overbought levels as indicated by the RSI (14) which today stands at 77.56. The technical outlook is bullish for silver, and higher levels might be on the cards.
On the upside, initial resistance for silver will be met at $18.34 the daily high if silver price breaks above, the next resistance to watch is at $18.62 the high from February 25th trading session. The next hurdle stands at $18.94 the yearly high from February 24th trading session.
On the other hand, immediate support for the silver price will be met at $18.09 the daily low. Next support zone stands at $17.66 the low from yesterday’s trading session. More bids might emerge at $17.75 the low from May 29th.
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