Silver futures are experiencing bullish momentum around the $33.50 level with support from a soft US Dollar and increased geopolitical tensions. Above the very significant 100-day EMA and having a robust RSI reading, the metal is ready to test immediate resistance in the $33.60-$33.70 zone. A definitive breakout above this level would set the stage for additional advances towards $34.60 and even the psychological $35.00 level. To the downside, support is solidly established at $32.61, with a breakdown potentially sending prices to the 100-day EMA around $32.20 and lower to $31.00. Traders will also be monitoring the Bank of Japan Governor’s address for further insight.

KEY LOOKOUTS

• A strong break above this near-term resistance area would set the stage for more upside action towards $34.60 and the psychological $35.00 mark.

• The May 22 low is a key support. A fall below it could see the stock fall towards the 100-day EMA at $32.20 and then possibly $31.00.

• Price of silver continues to find support above the 100-day EMA, and the RSI reading of 57.45 reflects continued bullish momentum in the short term.

• Rising geopolitical tensions and a weaker US Dollar are major drivers underpinning silver’s safe-haven demand, as investors also look forward to the Bank of Japan Governor’s speech for continued market guidance.

Silver is presenting very strong signs of bullishness as it hovers around $33.50, aided by the weak US Dollar and persistent geopolitical tensions that increase demand for safe-haven assets. The metal is well above its 100-day EMA, and the RSI indicates sustained upward momentum. There is immediate resistance around the $33.60-$33.70 area, with the breakout expected to push prices towards the May 28 high of $34.60 and the important psychological level of $35.00. On the downside, the $32.61 support needs to be monitored; a break below here may push prices to a more significant pullback to the 100-day EMA around $32.20 and possibly $31.00. Market attention is also focused on the upcoming Bank of Japan Governor’s speech, which may influence broader risk sentiment and silver’s trajectory.

Silver is trading close to $33.50, underpinned by a declining Dollar and increased geopolitical tensions, sustaining bullish momentum above the 100-day EMA. Important resistance is at $33.60-$33.70, with a possible breakout targeting $34.60 and $35.00, with support at $32.61. Traders look for the Bank of Japan Governor’s speech for additional market clues.

• Silver price is trading close to $33.50, with modest gains in early European session.

• The metal continues to be supported above the pivotal 100-day Exponential Moving Average (EMA).

• Relative Strength Index (RSI) is at 57.45, which is bullish.

• The nearest resistance is at the $33.60-$33.70 zone, with a breakout offering a chance to push prices to $34.60.

• A psychological resistance level to be watched is $35.00.

• Important support rests at $32.61, with a likely fall towards $32.20 (100-day EMA) and $31.00 if violated.

• Geopolitical tensions, a declining US Dollar, and the upcoming speech of the Governor of the Bank of Japan are significant price-moving factors.

Silver is now gaining traction in the midst of rising geopolitical tensions and a weakening US Dollar, which are fueled by rising demand for safe-haven assets. Precious metals such as silver are becoming more attractive to investors as a hedge against volatility and uncertainty. The metal is also gaining traction owing to concerns about the global economy, which are instilling cautious optimism in both traders and analysts.

XAG/USD DAILY PRICE CHART

CHART SOURCE: TradingView

Market players are also paying close attention to some important forthcoming events, such as a speech by the Governor of the Bank of Japan, which may have an impact on overall investor sentiment. These considerations together indicate that silver is likely to remain under the radar as geopolitical factors and economic policies continue to move in different directions, influencing the near-term outlook for the precious metals market.

TECHNICAL ANALYSIS

Silver is exhibiting consistent bullish pressure with the metal trading higher than its 100-day Exponential Moving Average, indicating underlying strength within the market. The Relative Strength Index (RSI) is well above the midline, indicating positive momentum without going into overbought levels. The main resistance can be seen around the $33.60-$33.70 zone, which, if broken, may open up for higher targets. On the other hand, firm support levels at $32.61 offer a cushion, keeping the present bullish trend in place while restricting downside risks.

FORECAST

If silver does break decisively above the near resistance area of $33.60-$33.70, it might pick up a lot of steam and move towards the new high of $34.60. This break may draw in more buyers, which could send prices higher towards the important psychological level of $35.00. Optimism in the market driven by continuing geopolitical tensions and weakness in the US Dollar might also sustain this move higher.

To the contrary, if silver does not stay above the support line of $32.61, it can see rising selling pressure, which can send it into a pullback towards the 100-day EMA level of $32.20. A break below there can expose it to further fall towards $31.00, testing the lower edge of the Bollinger Bands. Traders need to monitor these important levels since a breakdown might indicate a change in momentum and, more importantly, extend any corrective phase.