Silver Gains Fueled by Rising Demand for Precious Metals Amid Recessionary Fears

yesterday settled up by 0.23% at 69571 supported by increased demand for precious metals amid recession concerns and looming supply shortages. Traders remained focused on China after several countries decided to insist on negative Covid tests for travelers arriving from China. Geopolitical risks triggered by the Russian invasion of Ukraine ramped up demand for bullion investments, while Western sanctions threatened supply from major producer Russia and lifted prices to a year-peak of 73000.

Limiting the yearly gains, the rise in interest rates from major central banks to combat inflation drove investors out of bullion to interest-bearing securities, while the tight monetary setting reduced demand for silver as an industrial input for electrical conductors, tracking the mid-year decline for . Still, looming supply concerns drove silver to outperform and palladium in 2022. COMEX inventories fell 70% in the last 18 months to just over 1 million tonnes, and London Bullion Market Association stockpiles fell sharply amid outflows to India.

Technically market is under fresh buying as the market has witnessed a gain in open interest by 1.19% to settle at 21424 while prices are up 158 rupees, now Silver is getting support at 69442 and below same could see a test of 69314 levels, and resistance is now likely to be seen at 69689, a move above could see prices testing 69808.

Trading Ideas:
# Silver trading range for the day is 69314-69808.
# Silver gains are supported by increased demand for precious metals amid recession concerns and looming supply shortages.
# Traders remained focused on China after several countries decided to insist on negative Covid tests for travelers arriving from China.
# Looming supply concerns drove silver to outperform gold and palladium in 2022.