Russia Fuels Silver Surge: Prices Break $34 as Demand Soars

Silver price rose above $34 for the first time since 2012 on strong demand. It hit a high of $34.13 at the time of writing and is currently trading around $34.05.

Russian central bank's interest in Silver 

Russia's recent choice to add silver to its state reserves signifies a major change in its approach to precious metals. This decision is part of a broader strategy to strengthen financial stability amid ongoing economic sanctions and geopolitical challenges. The Draft Federal Budget now includes plans to obtain silver alongside gold, platinum, and palladium, highlighting a shift in how silver is valued. This could affect global silver markets, especially if more countries start recognizing its worth. Overall, this strategic move could alter the dynamics of precious metals portfolios for central banks in the future.

Chinese Stimulus-

China has introduced a major economic stimulus package to combat its slowdown, featuring a 0.5 percentage point cut in the reserve requirement ratio and reduced mortgage rates for existing homes. A loan initiative will help state-owned enterprises buy unsold properties for affordable housing, while a potential CNY 2 trillion ($278 billion) plan aims to stabilize equity markets. These measures are designed to enhance liquidity and support the overall economy.

Gold-silver ratio-

Gold/Silver ratio-80.34. The gold-silver ratio decreased from  86.48 to 80.15 showing that silver outperformed gold in the past few days. A ratio above 80 often suggests that silver may be a more attractive investment compared to gold.

Major trend reversal level -$34.50

It trades above 34, 55- EMA and above 200 and 365 Hull EMA in the 4-hour chart. The near-term support is around $33.70 and a break below the target of  $33/$32.70/$32. On the higher side, immediate resistance is around $34.50 and any breach above targets $34.73/$35/$36.

It is good to buy on dips around $33 with SL around $32 for a TP of $35.