Silver showed a minor pullback as the US dollar softened after US PCE data. It hit a low of $28.74 and is currently trading around $29.60.
Growing Demand for Silver in Clean Energy
The demand for silver is significantly increasing, driven by its essential role in the clean energy revolution and applications in renewable technologies. In solar power, silver is crucial for photovoltaic cells, with each panel containing about 20 grams of silver. Demand from the solar sector alone could reach 8,000 metric tons annually by 2025, a 50% increase from current levels. Additionally, silver is vital in hydrogen fuel cells, which are gaining traction in clean transportation and power applications. The Silver Institute projects a 9% rise in industrial demand for silver in 2024, reaching around 711 million ounces, with over 50% coming from low-carbon transition sectors. However, the market faces supply challenges, including a shortage of new silver discoveries and declining ore grades in existing mines. As the world shifts towards renewable energy, silver is becoming increasingly important, making it an attractive investment opportunity in the clean energy market.
Trading Strategy and Key Levels for Silver
For trading strategies, the major level to watch for silver is $30.15. The current position below key moving averages has near-term support at $28.40. If silver falls below this support, it could target levels of $27.70, $27.15, and $26.85. Conversely, immediate resistance is at $30.15, with potential targets at $30.75, $31.25, and higher.
Given the current market outlook, a good trading strategy would be to buy on dips in the $29.48-50 range, setting a stop-loss at $28.70 and targeting a price of $31.75.


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