Silver (XAG/USD) remains bullish above $32.50, bolstered by the 100-day Exponential Moving Average (EMA) and a robust 14-day Relative Strength Index (RSI) above 66.30. Even though it slipped lower to $32.75 during the Asian session, the white metal’s downside seems capped due to policy uncertainties, such as possible tariff issues under the Trump administration. The important resistance area is at $33.30-$33.40, with the breakout capable of taking prices towards $34.55 and $34.87. To the downside, key support comes at $31.79, and an important level of contention comes at $31.00-$30.90, the level of 100-day EMA. Falling below this can push silver down towards $29.70. The FOMC Minutes are on market players’ radar for the next lead.

KEY LOOKOUTS

• Silver is met with instant resistance at $33.30-$33.40; a breach above this can lead prices to $34.55 and $34.87.

• The initial support on the downside is at $31.79, with a key contention area at $31.00-$30.90; a breach here can drive prices to $29.70.

• The 100-day EMA underpins silver’s uptrend, while the 14-day RSI at 66.30 indicates further advances in the near term.

• Policy risks, such as possible tariffs under the Trump presidency, and the release of the FOMC Minutes will affect silver price volatility and movement.

Silver (XAG/USD) is still in a bullish region above $32.50, aided by the 100-day EMA and a healthy RSI reading of 66.30. The near resistance is at $33.30-$33.40, and a breakout may push prices towards $34.55 and $34.87. On the negative side, support is initially at $31.79, and a break below the $31.00-$30.90 range would expose the market to more losses towards $29.70. Policy uncertainties, such as possible tariffs during the Trump administration, are affecting market sentiment, with traders looking for the FOMC Minutes for more hints on future price direction.

Silver (XAG/USD) remains bullish above $32.50, underpinned by the 100-day EMA and robust RSI strength. Levels of resistance stand at $33.30-$33.40, and the level of support is $31.79. Market attention centers on policy unknowns and Wednesday’s FOMC Minutes for further guidance.

• Silver (XAG/USD) continues to be positive above $32.50, underpinned by the 100-day EMA and good RSI value of 66.30.

• The initial major resistance levels are at $33.30-$33.40, followed by additional target levels of $34.55 and $34.87 based on ongoing buying pressure.

• Initial support levels are at $31.79, followed by a critical bearish barrier around $31.00-$30.90; a fall may take prices down to $29.70.

• The price remains above the 100-day EMA, and the RSI indicates a bull run in favor of a further increase in silver.

• Policy risks, such as the possibility of future tariff moves by Trump’s government, may affect silver’s movement.

• Traders wait for the Federal Reserve’s FOMC Minutes for clues about forthcoming monetary policy and possible price action.

• A change in world economic mood or surprise policy signals may result in sudden movements in silver prices.

Silver (XAG/USD) remains market focus as a favored asset amidst changing economic realities and world uncertainties. Its consumption is fueled by both industrial and investment markets, making it one of the commodity market’s market movers. It finds extensive usage in electronics, solar panels, and medical procedures, which drive its long-term growth prospects. Its historical use as a safe-haven commodity also adds to its attractiveness at periods of economic downturn, as investors seek its services for diversifying their portfolios and preserving their wealth.

XAG/USD Daily Price Chart

TradingView Prepared by ELLYANA

Silver’s price action in the market is influenced by global economic trends, monetary policy, and geopolitical events. Its demand is determined by inflation, interest rate decisions, and currency movements. Additionally, central bank policies and changes in industrial consumption still affect its valuation. With governments and industry placing emphasis on sustainable and technological developments, the use of silver in green energy technologies and electronics is likely to increase, making it even more important in the long term to the global economy.

TECHNICAL ANALYSIS

Silver (XAG/USD) has a positive technical bias, staying above the 100-day Exponential Moving Average (EMA), which provides solid support at $31.00-$30.90. The 14-day Relative Strength Index (RSI) is at 66.30, showing continuous buying pressure without reaching overbought levels. The Bollinger Bands indicate price consolidation with resistance at $33.30-$33.40, which coincides with the upper band. A successful breakout above this level can take silver to $34.55 and $34.87. On the lower side, the major support levels are at $31.79 and $31.00, with a break below potentially taking the price lower to $29.70. The overall outlook is still bullish as long as silver trades above the 100-day EMA, with investors looking to upcoming macroeconomic announcements to confirm.

FORECAST

Silver (XAG/USD) has a positive outlook, with positive momentum boosted by solid technicals and macroeconomic conditions. If silver can hold above the critical $32.50 level, the next level of resistance is at $33.30-$33.40. A break above this level would push prices towards $34.55, a last-seen price in October 2024, and further to $34.87. Increased investor demand on the back of inflation hedging and safe-haven buying can further propel silver’s rally. Also, increased industrial consumption, especially in solar energy and electronics, contributes to its long-term potential. If world economic circumstances are conducive to commodities, silver may witness stronger demand, moving prices upward over the next couple of weeks.

To the negative side, silver has strong support at $31.79 and more substantial backing in the area of $31.00-$30.90. A slip below here can set the alarm bells ringing and induce more weakness, with the next important objective at $29.70. Market uncertainties surrounding changing Federal Reserve policies and the altering risk tone can exert downward pressure on silver. If interest rates continue to be high or rise further, non-yielding assets such as silver can come under selling pressure. Any fall in industrial demand or economic slowdowns in major markets such as China and the U.S. can also put pressure on prices. A break below key support levels can trigger bearish momentum, resulting in further corrections in the near term.