SILVER PRICES CONTINUE TO SURGE
After the transaction restrictions imposed on GameStop shares last week, individual investors organized through the social media platform Reddit turned to silver this time, leading to serious price mobility in precious metal. With the speculative price movement experienced, silver prices rose by approximately 11 percent to the highest level in 8 years. In the new week, although the safe harbors remained under slight pressure with the appreciation of the dollar on a global scale, the limited retraction momentum in the US 10-year bond yields seems to limit the downward pressure on commodities. On the other hand, the problems in the supply of Covid-19 vaccines and the weakening of the uncertainties regarding the incentive package in the USA in the new week cause the risk appetite in the markets to remain high. Especially today, eyes are turned to the meeting that the US President Biden will hold with 10 Republican senators.
If we look at the developments on the US side, while the ISM manufacturing PMI figure drew attention to the weakening of economic activities, the US Congressional Budget Office announced that the country's economy is expected to grow by 4.6 percent in 2021. The dollar index, which gained value after this development, put some sales pressure on the upward movement in safe-havens. On the other hand, with the weakening of vaccine supply concerns on the European side, it is seen that the rising scenario has gained momentum on the European indices side.
Although the sudden rising movement in ounce silver prices brought about the attacks towards the level of 30.0, the prices in the precious metal have retreated to the level of 27.50 with a slight balancing movement from this level. Especially in a possible outlook below 27.50 level, profit sales in Ounce silver prices can be expected to gradually bring support levels 26.75 and 26.0 to the agenda. In a possible bullish attack, we follow the 28.90 as the first attack point and the 30.0 resistance above this level as an important starting point.