The silver market is experiencing intense volatility, caught between unprecedented physical buying and concerning technical indicators. Investors are flooding into exchange-traded funds (ETFs), propelling the price toward the key psychological threshold of $60 per ounce. This rally has stretched the metal’s price to a rare extreme above its long-term average, creating a potentially explosive situation ahead of the US Federal Reserve’s policy meeting, fueled by tangible scarcity and interest rate speculation.

Unprecedented ETF Inflows Widen Supply Deficit

Two powerful fundamental forces are currently driving prices higher. First, the Federal Reserve begins its two-day meeting, with markets widely anticipating another interest rate cut. This expectation enhances the appeal of non-yielding precious metals like silver compared to interest-bearing assets. Second, and more impactful, physically-backed silver ETFs are recording historic levels of investment inflows.

To satisfy this investor demand, approximately 590 tonnes of silver were removed from the market last week alone. This aggressive accumulation by funds drastically exacerbates an existing supply deficit, especially as industrial demand remains steady. The dynamic has triggered a classic “fear of missing out” (FOMO), with buyers scrambling to secure metal before anticipated further price increases.

Key Market Data:
* Last Price: $58.50
* 30-Day Performance: +16.06%
* Distance from 52-Week High: -1.10%
* Deviation from 200-Day Average: >45% (per market analysis)
* 30-Day Volatility: 34.40%

Should investors sell immediately? Or is it worth buying Silber Preis?

Technical Overextension Flags Caution Amid Bullish Momentum

Despite the compelling bullish narrative, the technical picture suggests a need for caution. The current price of $58.50 is trading at an extreme distance from its 200-day moving average, which resides in the $39 to $40 range. A deviation of roughly 45 to 48 percent above this long-term trend is a statistical anomaly that often precedes a correction.

An analysis of the Relative Strength Index (RSI) provides a nuanced view. Currently at 62.0, the RSI is in bullish territory but has not yet reached extreme overbought levels. This could indicate room for further short-term gains, even though the substantial gap to the mean presents a clear risk. For now, buyers maintain control as long as the support level around $54.50 holds firm.

Outlook: Clear Path to $60, But Vulnerability Remains

Momentum is unequivocally with the bulls, powered by a genuine physical shortage. A decisive break above the 52-week high of $59.15 would likely open a clear path toward the $60 mark. However, investors must acknowledge the heightened risk of sharp, sudden pullbacks due to the massive separation from the 200-day average. This vulnerability would be immediately tested should the Fed deliver unexpectedly restrictive signals during its ongoing meeting.

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