The price of silver continues to move higher Thursday and shows no signs of slowing down. Bullish sentiment in global markets has led to strong buying of silver by traders and investors alike, as silver prices break above the critical resistance level ($33.80), which further demonstrates bullishness increasing within the market.
The renewed buying momentum across multiple global stock exchanges is a reaction to a combination of weak US Dollar performance and declining Treasury yields. In addition, renewed demand for silver as a safe haven asset is contributing to silver’s upward price trend over the past few trading days.
Should current momentum for silver continue, market analysts suggest silver could extend the recent trend higher with the next significant price targets around the weekly high near $34.30 – $34.50.
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### The Weak US Dollar Is Supporting Silver Pricing
This recent strength in the price of silver is primarily the result of the diminished value of the US Dollar. Since silver is priced in US Dollars, an increase in the value of the US Dollar typically makes the price of silver more expensive to international buyers; thus, increasing demand from international markets resulting in a price increase.
As a result of uncertainty regarding the future direction of US interest rates among investors, the US Dollar Index shows indications of a weaker US Dollar.
