The silver price has gone through a surprisingly bullish period for quite some time now. This uptrend is not coming to an end either, if analysts of Bank of America is to be believed. The ongoing weakness of the US Dollar continues to fuel demand for precious metals.
More Silver Price Momentum is Coming
Several factors are feeling the demand for precious metals. This will, by default, impact the prices of silver, as well as gold and other precious metal. These safe haven assets have been in high demand since the coronavirus pandemic began. Judging by the current ongoing developments, it seems unlikely that this demand will decrease.
One important aspect to keep in mind is how silver has many use cases. Gold, on the other hand, does not, which may explain why its price has been slower to rise in comparison to its little brother. Silver’s value has genuinely exploded, and even more than doubled since March of this year.
Contrary to what most people expected, the US Dollar is not performing all that well. The greenback is losing value against all major currencies, including the Pound Sterling and Euro. The GBP/USD pair has hit its highest level since March, further confirming that the Dollar is not pulling its weight right now.
A weaker US Dollar will continue to fuel gains for most markets. It is evident that the stimulus checks and other helicopter money packages are now crippling the nation’s economy. As unemployment figures remain high, and schools are still unlikely to open again, this situation will not improve. A bullish sign for precious metal, but bad news for everyone who depends on fiat currencies to make a living.
BofA Analysts are Bullish
For analysts, the current market sentiment isn’t making life that much easier. Those working for Bank of America aren’t too sure about what to make of this current situation. In a new report, the BofA Securities arm indicated that this is just the beginning of the bull run.
More specifically, they expect to see gold rise as high $2,159, and silver could very well top $30.49. Even copper has received a near 15% upward value adjustment. It is, for most traders, all about precious metals right now.
A similar sentiment can be found across cryptocurrency markets. Bitcoin is on its way to hit $12,000 again, whereas Ethereum inches closer to the $400 mark. All of these crypto assets equally benefit from the weakening dollar, and continue to follow a similar trend to gold and silver.