After silver reaches new highs, what lies ahead? Long-term prospects are promising, but short-term volatility risks require vigilance.
Recently, silver prices have continued to hit new highs, and bullish sentiment in overseas markets has also risen. However, behind this impressive performance, the future trend of silver still needs to be viewed in conjunction with both long-term and short-term factors.
From a mid to long-term perspective, the upward trend of silver remains solid. A report by GF Futures indicates that the macroeconomic fundamentals and monetary policy expectations in the United States are favorable for silver prices from a financial perspective. Bullish funds are significantly increasing their holdings through ETFs, combined with support from the non-ferrous sector, further strengthening the upward momentum of silver. Additionally, threats to the independence of the Federal Reserve and their impact on real interest rates and funding sentiment, as well as potential disruptions from trade and geopolitical risks, have left considerable room for price increases in silver. The trend opportunities for silver in the mid to long term are worth looking forward to.
However, in the short term, silver faces multiple volatility risks: firstly, as COMEX silver approaches its final trading day, demand for physical delivery continues to decrease, weakening its driving effect on the market, combined with a rebound in domestic inventories, which may ease bullish sentiment; secondly, after a significant rise in silver prices, it may enter an overbought range, with increased volatility risks in crowded trading conditions, and the possibility that regulatory authorities may implement more risk control measures; thirdly, U.S. economic data and statements from Federal Reserve officials will still have a direct impact on the market, and speculative bulls taking profits at high levels may also trigger a price correction in silver.
For short-term operations, it is recommended that investors remain vigilant about high-level volatility risks. Long positions can be appropriately reduced at highs, or derivatives such as futures options can be used to lock in existing profits.