Bond Yields falling back, VIX increasing!
Two days ago, when Silver touched almost two months high, US ten-year bond yields also touched 1.90% to add the doubts about the continuing of bulls. However, today with falling back the yields, Silver continued its way higher above 24.70 USD.
Silver in the current situation benefits from all available conditions. Economic data and situation show a bright future and it means more demand for industrial usage of Silver. Today, the People Bank of China has cut Loan Prime Rate by 10bp. That means that China still thinking about more support from the economy and does not want to leave the improving path in the middle of the road.
On the other hand, we can see market risk increasing and USVIX moving above 23.20. Silver besides its industrial usage is one of the traditional safe havens and trusted investments. Therefore again we can see that again with increasing the market risk, its demand is increasing much more. As we are expecting to see another increasing wave of the economy in 2022, therefore the first months of 2022 we can see its safe-haven demand will increase, and then, with recovery in the stock markets and with more economic prosperity, this time, the increase of its industrial demand will cause prices to rise.
Technically also, it is in a clear uptrend. Candles moving way above Parabolic SAR dots, average market volume increasing and RSI move above 71. All technical indicators remain bullish. 100 DMA at $23.43 is strong support and holding above this level, will put the 2021 November high at $25.37 in the radars. On the flipside, breaching under this level also will bring the $21.80 at the next target, but in the very short term, as the overall market expectation is very positive for silver.
