On Monday (September 16th) Beijing time, the spot price of silver remained at around $24 per ounce. Compared to the price of gold, the performance of silver has been relatively poor recently. However, with the changing global macroeconomic situation, especially the further clarification of the Fed's dovish stance, silver is accumulating upward momentum. The current ratio of gold to silver is about 85:1, higher than the historical average, indicating that silver is relatively undervalued and has potential upside potential.

Goldman Sachs pointed out in its latest weekly report that silver positions are lower than gold, indicating that it is seen as a "catch-up trade". The institution believes that silver is about to enter a strong upward cycle and recommends investors to buy call options with a spread of more than two months, believing that this breakthrough will continue for several months.

The position of the Federal Reserve has a direct impact on the precious metal market. Recently, the market expects the Federal Reserve to begin a mild cycle of interest rate cuts in the coming months. Several well-known institutions, including "well-known institutions," have commented that although current inflationary pressures remain high, the Federal Reserve's policy shift has been largely digested by the market. As expectations of lower interest rates rise and the US dollar weakens, the demand for precious metals, especially silver, is expected to increase.

Goldman Sachs' derivatives sales and trading department emphasized that the dovish stance of the Federal Reserve will not only boost gold, but also bring greater upward potential to silver. Silver positions are relatively low, and investors' interest in it is gradually increasing, especially in the mining ETF field, indicating that silver is attracting a large amount of capital inflows and preparing for a bigger market.

In addition to macroeconomic policies, the rapid development of artificial intelligence (AI) technology is also driving demand for silver. As one of the key metals in AI and other high-tech applications, the industrial demand for silver has significantly increased. With the acceleration of technological progress and digital transformation, silver will play a more important role in the coming years, providing support for its long-term price growth.

This week, some well-known media and economists have made predictions about future interest rate cuts by the Federal Reserve. According to the latest report from a well-known institution, the Federal Reserve may cut interest rates by 225 basis points before 2025, which brings positive expectations to the precious metal market. Past historical experience has shown that every time the Federal Reserve lowers by 25 basis points, gold prices typically rise by 6.3%. This model is also applicable to silver. According to the analysis of the institution, the price of silver is expected to break through $37 per ounce, an increase of 23% compared to spot prices.

In addition to monetary policy, Michael Hartnett of Bank of America also released a bullish outlook for precious metals. He believes that gold is the best asset to hedge against the soaring inflation in 2025, while silver, as the "cousin of gold," will benefit in a similar macro environment. With the resurgence of inflation, the price of silver will receive greater impetus.

From a technical perspective, the current price of silver is approaching an important support level. Since mid August, silver prices have steadily risen, showing a solid upward trend. Key technical indicators such as RSI (Relative Strength Index) and MACD (Moving Average Divergence Index) indicate that silver is in a neutral to strong state. This means that although there may be a slight correction in the short term, the overall trend is still bullish.

Goldman Sachs pointed out that silver has lower positions than gold, so it may become a "catch-up trading" target for investors in the future. Especially against the backdrop of increasing demand from global investors for precious metal ETFs, the performance of silver may further strengthen. Based on the experience of the past few years, when the market is significantly bullish on gold, silver often experiences significant catch-up gains in the later stages.

Renowned analyst Ram pointed out in his latest report that if the Federal Reserve gradually cuts interest rates in the next round of easing cycles, the upward potential of silver will be greater than that of gold. He estimates that there is a high possibility that the price of silver will break through $37, especially with the continued relaxation of Federal Reserve policies in the next two years, which will significantly increase investor demand for silver.

With the gradual warming of the silver market, investors' interest in precious metal ETFs has significantly increased. Last Friday, the trading volume of gold call options reached 940000 lots, the second highest in nearly three years, indicating an increased market expectation for the overall rise of precious metals. Although gold has dominated market attention in the past few months, the potential upside potential of silver appears even more tempting.

Goldman Sachs suggests that investors should take action as soon as possible, especially focusing on silver call option trading. These options not only provide investors with short-term upward opportunities, but also offer protection for silver's breakthrough gains in the coming months.

The silver market is at a critical turning point, with the dovish stance of the Federal Reserve, increased industrial demand, and rising investor interest driving the outlook for this metal. Although silver has lagged behind gold for a long time, with the adjustment of positions and technical support, silver is expected to usher in a strong upward trend in the coming months. For market traders, now is the time to focus on silver and seize potential opportunities.

The future market trend may depend on further clarification of Federal Reserve policies and the global economic recovery process, but overall, the upward potential of silver has gradually emerged.