Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
This week, silver prices have pulled back to $31.033 per ounce, but analysis from StoneX Group’s market analyst Fawad Razaqzada indicates that silver prices are expected to break above $35 per ounce this summer. Silver prices rose about 7% last week, marking the biggest weekly gain since mid-May.
Razaqzada pointed out that weak U.S. economic data has increased market expectations for a Federal Reserve interest rate cut in September, weakening the dollar against a basket of foreign currencies. Along with concerns about the French elections, silver prices last week capitalized on the situation to break out of a consolidation pattern. This week, the market will closely watch inflation data, and dollar-denominated assets like gold and silver will be in the spotlight.
In his report, he wrote that despite the weak start this week, both gold and silver still have significant upside potential. He indicated that “dip-buying” remains his preferred strategy in the precious metals market.
From a technical perspective, silver had been in a downtrend in June prior to last week. However, after testing a major support area of $28.70-$29.00, buyers re-entered the market. In the process, several short-term resistance levels were “taken down,” with some becoming key zones that silver prices must hold to continue rising.
In addition to reclaiming the uptrend line that has been in place since February, silver prices also climbed back above the 21-day exponential moving average. More importantly, it has broken the resistance trend of its bull flag pattern around $30.00 to $30.20 area. Therefore, if the CPI data release this week leads to a retracement in silver prices, the $30.00-$30.20 range will be a key support area.
However, from the long-term weekly chart, silver prices have recently just broken out of their long-term consolidation zone and may be on the verge of a larger-scale move. If all goes well, silver prices could rise to $35 per ounce, if not higher, in the coming weeks.
In the first half of this year, driven by global supply deficit and increased demand, silver prices have risen nearly 22.5%. In January, the Silver Institute predicted that global silver demand would grow 1% year-over-year to near-record levels of 1.2 billion ounces in 2024. This growth is primarily driven by industrial applications, especially in the booming solar energy sector.
This year, the silver market deficit is expected to widen by 17% to 215.3 million ounces, marking the fourth consecutive year of structural deficits.
