September silver futures, which traded near $23 an ounce Thursday, have advanced about 23% just in the month of July and have moved to levels not seen since 2013. Solar technology along with the emergence of 5G technology are both industries that require silver, which is fueling the white metal due to its industrial nature, per Charles Schwab.
Key quotes
“Silver may be benefiting from an outlook for global industrial growth and an emerging solar power play. U.S. Democratic presidential nominee Joe Biden’s Clean Energy plan unveiled last week proposed rapid expansion of wind and solar power infrastructure. Tesla has brought solar power into the news headlines as well.”
“Silver’s breakout to the upside brings an RSI reading well above 70 which hints at overbought conditions. September silver futures are trading above all relative moving averages and have had several gap-up days over the past week.”
“In early July, 50-day moving average rose above the 200-day, an event known as a golden cross. Recent golden crosses for silver have failed to yield any extraordinary moves, but several years ago a sustained cross coincided with a substantial rally over a six-month period.”
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