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Commodities Silver

Silver Price Forecast: XAG/USD Falters Below $32.50 as US Yields Recover

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  • May 17, 2025
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Silver prices (XAG/USD) concluded the week with a negative bias, falling below $32.50 as US Treasury yields recovered, dampening demand for the metal. Though it consolidated between the 50-day SMA at $32.73 and 100-day SMA at $31.88, XAG/USD could not show a directional bias, and the RSI remained close to neutral. A conclusive break above $33.00 would steer momentum to the advantage of bulls towards $33.50 and possibly $34.51. But a decline below $32.00 would open up the way to lower support levels at $31.65 and the 200-day SMA at $31.23, elevating downside risk in the short term. KEY LOOKOUTS • A break above this level on a sustained basis could generate bullish momentum, paving the way to $33.50 and $34.51. • Holding above this psychological level is essential; a breakdown could fuel bearish pressure. • The 50-day SMA of $32.73 marks the top of the upside, while the 100-day SMA of $31.88 and 200-day SMA of $31.23 offer essential downside support. • The neutral RSI on the 50 level signifies indecision; a move either way could point to the next direction of the trend. Traders must keep a close eye on the $33.00 resistance level, as a break above it may ignite fresh bullish pressure, reaching $33.50 and possibly $34.51. Conversely, it is imperative to hold support at $32.00; a break would reveal important levels at $31.65 and the 200-day SMA at $31.23, indicating increasing bearish pressure. The 50-day and 100-day SMAs at $32.73 and $31.88 remain to establish the ongoing consolidation range. Meanwhile, the RSI close to neutral indicates market indecision, and a decisive directional move could be on the cards. XAG/USD is range-bound between the 50-day SMA at $32.73 and the 100-day SMA at $31.88, and there isn’t a definitive trend. A breach above $33.00 might initiate bullish momentum, while a fall below $32.00 could reveal lower support around $31.23. • XAG/USD languishes below $32.50 on pressure from surging US Treasury yields. •  Price capped by 50-day SMA at $32.73, supported by the 100-day SMA at $31.88. •  RSI is flat at the neutral 50 level, showing no clear direction in the market. •  Break above $33.00 might set the stage for moves to $33.50 and the October high of $34.51. •  Losing above $32.00 might take prices lower to $31.65 and the 200-day SMA of $31.23. • Choppy market conditions continue, with silver consolidating inside a tight band during the last week. • Technical bias still remains neutral, looking for a clear break above resistance or below important support. Silver prices eased at the end of the week, driven mainly by general market sentiment and macroeconomic conditions. The recent bounce in US Treasury yields depressed investors’ demand for non-yielding assets such as silver, helping push it into decline. In spite of persistent geopolitical tensions and inflation issues, the metal did not get any safe-haven flows, indicating market participants are more interested in interest rate directions and dollar moves at this point. XAU/USD DAILY PRICE CHART CHART SOURCE: TradingView Silver’s direction remains heavily influenced by global economic indicators and policy expectations. As market participants weigh future economic data and central bank cues, silver’s mood is still guarded. Although the metal has long-term appeal as an industrial and investment precious metal, short-term patterns are linked to moving macro dynamics and risk appetite in larger financial markets. TECHNICAL ANALYSIS Silver (XAG/USD) is in a consolidation mode, being stuck between the 50-day Simple Moving Average (SMA) of $32.73 and the 100-day SMA of $31.88. The Relative Strength Index (RSI) is steady around the neutral position of 50, indicating no momentum in either direction. A break above or below these major levels can determine the direction of the next trend with $33.00 serving as key resistance and $32.00 as near-term support. Without a breakout, price action can be directed to remain range-bound and choppy. FORECAST Silver (XAG/USD) breaking above the major resistance level of $33.00 may cause a bullish push towards the next targets at $33.50 and $34.00. A prolonged thrust past these levels can cause a test of the October 30 high of $34.51. The bearish momentum would probably be underpinned by new buying interest, particularly if overall market conditions, like softer US yields or a weaker dollar, become favorable to precious metals. Technical charts also may turn to signal bullish orientation, underpinning the rise. Conversely, a fall below the $32.00 level could indicate increasing bearish pressure, sending silver lower toward the 100-day SMA at $31.88 and May 15 low of $31.65. If this support level does not hold, the next significant level to watch would be the 200-day SMA at $31.23, with potential to slide further toward the $31.00 psychological level. Such action would signal a change of heart, perhaps on the back of firmer economic data or sustained advances in US Treasury yields, which have a tendency to weigh upon precious metals.

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Commodities Silver

Silver Price Forecast: XAG/USD Remains Steady at $31.50 as Rising Trade War Uncertainty Takes Grip

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  • March 4, 2025
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Silver (XAG/USD) remains steady at $31.50, supported by safe-haven buying as world trade tensions grow. The White House announced President Trump signed the order increasing the tariffs on imports from China to 20%, and Canada replied with retaliatory 25% tariffs on imports from the United States. China has also pledged countermeasures, further pushing market uncertainty. Mixed U.S. economic reports, such as a modest fall in ISM Manufacturing PMI but a better-than-expected S&P Global Manufacturing PMI, contribute to the market’s conservative sentiment. Investors are now eyeing future U.S. employment reports, which may affect the Federal Reserve’s next monetary policy action. KEY LOOKOUTS • Increasing U.S.-China trade tensions and Canada’s retaliatory tariffs may fuel safe-haven demand, affecting silver prices in the short term. • Investors look for U.S. employment figures, such as the ADP and Nonfarm Payrolls, to gauge possible Fed interest rate actions. • Indecisive U.S. manufacturing reports create economic uncertainty, making future releases pivotal in influencing silver price directions and investor attitude. • China’s commitment to countermeasures against U.S. tariffs will introduce volatility, keeping silver an attractive hedge against economic uncertainty. Silver prices are underpinned above $31.50 as rising tensions in trade among the U.S., China, and Canada spur safe-haven buying. The move by President Trump to hike tariffs on imports from China to 20% has prompted countermeasures, with Canada saying it will slap a 25% tariff on U.S. products and China promising countermeasures. In the meantime, conflicting U.S. factory data contributes to market uncertainty, keeping investors on guard before the important employment reports, such as the ADP and Nonfarm Payrolls. These economic releases will be critical in determining the Federal Reserve’s monetary policy outlook, which will have an impact on silver’s direction in the next sessions. Silver prices hold firm above $31.50 as mounting trade tensions drive safe-haven demand. Tariffs on China by the U.S. and Canadian retaliatory actions introduce uncertainty, while future U.S. jobs reports may determine the Federal Reserve’s policy and silver’s price action. • Silver holds firm above $31.50 as investors flee to safe havens amidst growing global trade tensions. • Trump’s 20% levy on Chinese imports has induced China to pledge countermeasures, introducing market uncertainty. • Canada intends to place a 25% tariff on imports from the U.S. totaling C$30 billion should U.S. tariffs be imposed. • Heightening trade tensions contribute to volatility, and thus silver is becoming an appealing hedge against economic turbulence. • Though ISM Manufacturing PMI weakened, S&P Global’s final February PMI topped forecasts, heightening uncertainty. • ADP and Nonfarm Payrolls are awaited for hints at potential Fed interest rate action. • Silver’s path will be contingent on developments in trade tensions and important economic indicators impacting investor sentiment. Silver remains strong in demand as global trade tensions intensify, further solidifying its position as a safe-haven asset of choice. With the U.S. imposing additional tariffs on Chinese goods and Canada announcing retaliatory actions, investors are looking to silver more than ever as a hedge against economic uncertainty. The constant trade wars are not only affecting diplomatic relations but also creating supply chain and global economic stability fears. Silver is thus still a safe haven for investors looking for stability in times of uncertainty. XAG/USD Daily Price Chart Chart Source: TradingView Outside of trade policy, economic statistics and geopolitical uncertainty have a significant influence on sentiment in the market. The U.S. employment figures are under close watch by investors, as the direction of labor market trends tends to inform overall economic decisions. China’s willingness to pursue countermeasures to U.S. tariffs provides another source of uncertainty. Against this backdrop, silver’s function as a store of value is increasingly prominent, further solidifying its status as a preferred asset during times of uncertainty. TECHNICAL ANALYSIS Silver (XAG/USD) is holding steady above $31.50, with good support at this price as buyers remain in control. The price is holding above important moving averages, a sign of continued bullish pressure. The Relative Strength Index (RSI) is still close to neutral levels, indicating scope for additional gains without underlying overbought levels. Also, silver is probing a resistance area near $31.70, and a strong breakout above this level can pave the way for additional advances. But if it fails to maintain current support levels, it can lead to a consolidation period before the next direction. Price action is closely monitored by traders for confirmation of the next direction. FORECAST Silver prices may extend the upside further if global trade tensions continue to mount, forcing investors into safe-haven assets. A convincing breakout above the $31.70 resistance level can lead to further advances, which can even challenge the $32.00 mark in the near term. If coming U.S. economic reports, such as the ADP and Nonfarm Payrolls, point to economic weakness, hopes of a more dovish Federal Reserve will further lend support to silver prices. Further, any other retaliatory Chinese or Canadian trade action will increase uncertainty, lending more bullish value to silver. Downside risk will come if trade tensions lessen or economic data hints at a strong U.S. labor market, causing selling in silver due to improving risk appetite. A dip below the key support at $31.50 may initiate a correction, potentially driving prices towards the $31.20 or even $31.00 levels. Moreover, a firmer U.S. dollar and higher Treasury yields may pressure silver, as investors redirect attention towards interest-bearing assets. In the short term, silver’s direction will be influenced by geopolitical events and economic indicators that influence market sentiment.

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Commodities Silver

Silver Price Forecast: XAG/USD Drops 4% This Week on Strong US Dollar and Market Uncertainty

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  • March 1, 2025
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Silver (XAG/USD) saw a sharp fall of almost 4% this week, falling to $31.13 as the rally in the US Dollar and profit taking weighed on the market. Even as silver tried to remain above $33.00, it saw intense selling pressure, leading to a pullback towards major support levels. The 100-day SMA at $31.20 was violated, leaving the 50-day SMA at $30.89 as the following pivotal level. In case of additional bearish momentum, silver may test the 200-day SMA at $30.47 and the low in January of $29.70. Since the Relative Strength Index (RSI) also indicates increasing bearish momentum, market participants remain vigilant for possible additional losses. KEY LOOKOUTS • Silver is challenging the 50-day SMA level of $30.89; a fall below may expose the 200-day SMA level of $30.47 and $29.70. • Relative Strength Index (RSI) shows increasing selling pressure, pointing towards further downward risk if silver is unable to regain key levels of resistance. • A resilient US Dollar keeps silver prices suppressed, with market sentiment changing with economic uncertainty and possible recession risks. • Should silver stabilize at levels above $31.00 and breach the $33.00 level, buyers could take the upper hand, taking prices towards the resistance at $34.00. Silver (XAG/USD) is pressured following a near 4% weekly decline, with key support levels under focus. The 50-day SMA level of $30.89 is an important level to watch; a breach below here may lead to more losses towards the 200-day SMA level of $30.47 and the January low at $29.70. The risk-off environment and the appreciating US Dollar are driving bearish pressure, as shown by the Relative Strength Index (RSI). Yet, if silver can sustain itself above $31.00 and push through $33.00, a possible reversal to $34.00 may be imminent. Traders need to watch closely for market sentiment and upcoming economic reports for further guidance. Silver (XAG/USD) faces strong selling pressure, dropping nearly 4% weekly as the US Dollar strengthens. Key support at $30.89 remains critical for future price action. • XAG/USD declined nearly 4% as the strengthening US Dollar and profit booking weighed on prices. • The 50-day SMA is a crucial support level; a break below could lead to further declines toward $30.47 and $29.70. • The Relative Strength Index (RSI) warns of building selling pressure, suggesting the potential for prolonged downside movement. • The strong USD remains bearing down on silver prices, with investors shunning the metal and rushing to safe-haven assets due to economic worries. • Should silver stabilize above $31.00 and rise through $33.00, then a bullish move toward $34.00 is feasible. • Coming economic data and risk sentiment will go a long way in dictating the next direction for silver. • Uncertainty in global markets and technical levels indicate that silver’s direction is based on whether buyers will be able to take control. Silver is still a vital asset in the world financial market, which is controlled by economic trends, investor attitude, and wider macroeconomic factors. The precious metal has been considered both an industrial commodity and a store of value for long, making investors seek stability amid economic uncertainties. Inflation trends, central bank actions, and geopolitical events all contribute to silver’s demand significantly. The use of the metal in industries like electronics, solar panels, and medical uses keeps it relevant for purposes other than investment alone. XAG/USD Daily Price Chart Chart Source: TradingView Market trends and investor sentiment globally continue to influence silver’s performance. During economic uncertainties, silver tends to experience added interest as a inflation hedge and currency volatility hedge. On the other hand, its industrial demand depends on economic growth and technological innovation. As the world continues to shift toward energy transition and industrial uses, silver’s function continues to be dynamic, and it is something that investors and manufacturers watch closely. With changing market conditions, the role of silver in investment portfolios and industrial applications is likely to continue. TECHNICAL ANALYSIS Silver points to significant support and resistance levels being keenly monitored by traders. The metal has just seen selling pressure after it could not hold up above $33.00, resulting in a test of lower support levels. The 50-day Simple Moving Average (SMA) at $30.89 is a key level, with a break below opening up further potential downside to the 200-day SMA at $30.47. Relative Strength Index (RSI) suggests increasing bearish momentum, implying that bears are currently dominant. Yet if silver holds higher above $31.00 and bulls turn back up, a possible reversal back to $33.00 and higher may be underway. Traders must monitor price action and major moving averages to determine future trends. FORECAST Silver’s bullish forecast hinges on major factors including renewed investor appetite, US Dollar weakening, and strengthening industrial demand. If silver can stay above the $31.00 level and break above the $33.00 resistance level, it may regain its upward momentum. A breakout above this level could trigger additional buying, driving prices towards $34.00 and beyond. Moreover, if inflation fears return or central banks turn dovish, silver might gain as a hedge against economic uncertainty. Solid demand from the renewable energy and technology industries could also fuel long-term price appreciation. Silver is still at risk of a stronger US Dollar and changing market sentiment on the downside. If prices cannot hold above key levels of support, especially the 50-day SMA of $30.89, additional losses will be possible. A breach through this level will expose silver to more losses, testing the 200-day SMA of $30.47 and potentially the January low of $29.70. Slowing economies or slackening industrial demand will add more pressure to the performance of silver. Further, if risk appetite grows and investors move to equities or other high-yielding assets, silver can face protracted selling pressure.

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Commodities Gold

Gold Price Remains Steady Near $2,900: Market Sentiment, USD Influence, and Prospects Ahead

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  • February 17, 2025
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Gold price (XAU/USD) remains stable near the $2,900 level, buoyed by persistent fears of a global trade war owing to US President Donald Trump’s protectionist tariff measures. Though the precious metal gains from a softer US Dollar in the wake of disappointing retail sales figures, the market remains on guard as the Federal Reserve continues to stick to its hawkish stance. Optimism in US-Russia peace negotiations and positive risk mood have capped gains. Technically, gold’s positive bias holds good, with important resistance levels at $2,925 and an all-time high at $2,943, and key support levels of $2,885 and $2,855. Any solid break below $2,785 would lead to a sharp correction.  KEY LOOKOUTS • Fears over Trump’s possible trade tariffs, such as on autos, may propel safe-haven demand for gold, greatly affecting price action. • The Fed’s aggressive stance and anticipation of extended higher rates can affect gold’s attractiveness, with market now looking towards a possible rate cut in September. • USD movement, as driven by economic releases and Treasury yields, is still a pivotal determinant of gold’s short-term price direction. • Gold is resisted at $2,925 and $2,943, while significant support levels at $2,885 and $2,855 may determine the next market direction. Gold price is still sensitive to various issues, such as US tariff policy, Federal Reserve actions, and the US Dollar strength. Increased fear of Trump’s possible trade tariffs, especially on cars, has supported safe-haven demand for gold. In the meantime, sentiment remains skewed towards a September Fed rate cut over year-end, which is supporting market views. The price action of the US Dollar, fueled by Treasury yields and economic data, is instrumental in setting the near-term gold direction. Technically, resistance around $2,925 and $2,943 could cap advances, with support around $2,885 and $2,855 being the game-changers in stopping a steeper correction. Gold price fluctuates around $2,900, pushed by US tariff worries, Fed actions, and USD fluctuations. Important resistance at $2,925 and support at $2,885 are still pivotal. • Gold price holds steady at the $2,900 level, buoyed by safe-haven buying amid geopolitical and economic risks. • Trump’s proposed tit-for-tat tariffs and possible automobile tariffs stoke fear of a worldwide trade war, making gold more attractive. • The hawkishness of the Fed and anticipation of a rate cut delay influence gold’s short-term price action. • A bearish US Dollar, fueled by poor US Retail Sales figures, has temporarily boosted gold prices. • US-Russia talks, as well as increased tensions in Ukraine, bolster gold’s safe-haven demand. • The resistance is found at $2,925 and $2,943, and the key support areas are at $2,885 and $2,855, dictating price action. • A combination of risk-on mood and tension about inflation impacts gold’s ability to hold gains or correct lower. Gold price continues to be technically resilient, holding on to its bullish foundation around the $2,900 level. The Relative Strength Index (RSI) has cooled off from overbought levels, diminishing the likelihood of an immediate correction while continuing to support additional upside potential. Critical resistance levels to monitor are $2,925, followed by the all-time high around $2,943. A successful breakout above this area could stimulate fresh buying, continuing the uptrend and opening the door to higher levels. Moving averages also show a strong bullish trend, supporting the potential for additional gains if market conditions continue to be favorable. XAU/USD Daily Price Chart TradingView Prepared by ELLYANA On the downside, near-term support is at $2,885, followed by a more robust support area around $2,855 and $2,834. If gold falls below these levels, buyers might come in to support the uptrend, capping losses. Still, a clear-cut breakdown below $2,800 might turn sentiment to bearish side, causing a more extensive correction towards $2,785-$2,784. Participants also need to keep an eye on global economic news, specifically US interest rate expectations and geopolitics, that might fuel volatility and impact gold’s price movements in the near term. TECHNICAL ANALYSIS Gold price continues to be in bullish territory, sustaining itself at the $2,900 level. The Relative Strength Index (RSI) has declined from the overbought territory, indicating scope for further action, with other oscillators remaining in positive favor. Near-term resistance is at $2,925, with the all-time high around $2,943. A convincing breakout above this level would propel fresh buying momentum, extending the current uptrend. Support is seen at $2,885 on the downside, with firm demand likely at $2,855 and $2,834. A break below $2,800 with continued momentum would indicate a deeper correction, and possibly a bearish change in direction. FORECAST Gold price is well-set up for additional gains, with good technical support and safe-haven demand being major drivers. If the price holds above the $2,900 level, an initial drive up towards the $2,925 resistance level is anticipated. A clean breakout above this level can see gold challenge its all-time high of $2,943, and if the momentum continues, it might stretch further to $2,960-$2,975. Events like continued US Dollar weakness, heightened geopolitical tensions, or a dovish turn in the Federal Reserve stance may further accelerate the rally in gold. Gold’s positive outlook notwithstanding, downside risks are present. If the price is rejected at resistance levels and goes below $2,885, it may lead to a pullback to $2,855 and then to $2,834. A breach below the crucial psychological level of $2,800 would mark a change in sentiment, leading to a more significant correction to $2,785 or even $2,750. Improved US economic data, a US Dollar rebound, or decreased geopolitical tensions may cap gold’s upside and mount selling pressure in the short term.

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Commodities Silver

Silver Price Prediction: XAG/USD Continues to Gain with Bullish Momentum, Targets $33.10 Resistance

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  • February 17, 2025
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Silver (XAG/USD) maintains its bullish momentum, trading at around $32.40 after bouncing off the nine-day EMA at $32.08. The daily chart technical analysis indicates a strong bullish inclination, with the price trending in an upward channel. Solid short-term momentum is indicated by the metal’s status above the nine-day and 14-day EMAs and the 14-day RSI remaining above 50. Main levels of resistance are at $33.10 and the four-month high of $33.40, with support at $32.08, $31.85, and $31.60. Breaking below these points could turn the outlook bearish, sending silver lower to the five-month low of $28.74.  KEY LOOKOUTS • Silver is tested by serious resistance at $33.10, the top of the rising channel, with additional upside potential to $33.40. • The nine-day EMA at $32.08 provides early support, with a breakdown below potentially revealing additional downside to $31.85 and $31.60. • Silver is above the nine-day and 14-day EMAs, with the 14-day RSI above 50, providing additional evidence of short-term bullish pressure. • A break decisively above $33.10 might encourage additional gains, with a fall beneath $31.60 potentially shifting sentiment bearish towards December’s five-month low at $28.74. Silver (XAG/USD) continues in bullish mode, trading around $32.40 as it holds above important levels of support such as the nine-day EMA at $32.08. The price remains within an up-sloping channel, the resistance being $33.10 and the additional upside target $33.40. Technical factors, including the 14-day RSI remaining above 50 and the price above the nine-day and 14-day EMAs, indicate ongoing strength. A breakdown below $31.60 would, however, undermine the positive outlook, opening silver to further losses to the five-month low set in December at $28.74. The major levels to monitor are these. Silver (XAG/USD) is trading close to $32.40, holding bullish sentiment above significant support levels. A move above $33.10 could indicate further advances, and a fall below $31.60 could break the trend. • Silver is trading close to $32.40, holding a bullish sentiment in an upward channel. • The next resistance is at $33.10, and a breakout could push prices to $33.40. • First support is at $32.08 (nine-day EMA), followed by $31.85 and $31.60. • Silver is above the nine-day and 14-day EMAs, with the 14-day RSI at more than 50, showing strong momentum. • A breakout above $33.10 could propel further advances, while a breakdown below $31.60 might turn sentiment bearish. • If silver breaks below $31.60, it could test the December low of $28.74. • Traders need to watch price action around key levels to gauge future direction and possible breakout opportunities. Silver (XAG/USD) continues to remain in its bull trend, being above major moving averages and trending within an increasing channel. It is currently priced above the nine-day and 14-day Exponential Moving Averages (EMAs), meaning it has great short-term momentum. The 14-day Relative Strength Index (RSI) is still above the 50 level, showing consistent buying momentum. Resistance appears at $33.10, which sits on the upper edge of the rising channel, then there is a major breakout level at $33.40, its four-month high. If silver manages to break through these resistance points, it may set the stage for additional advances in the sessions ahead.  XAG/USD Daily Price Chart TradingView Prepared by ELLYANA On the negative side, the immediate support is at $32.08 (nine-day EMA), then $31.85 (14-day EMA) and the lower limit of the rising channel at $31.60. A fall below this key area can undermine the bullish scenario, setting the stage for a more extensive retracement towards $28.74, the five-month low of December. But as long as silver stays in the rising channel and above crucial EMAs, the overall trend is still positive. Traders need to keep a close eye on price action around these crucial technical levels to gauge possible breakouts or reversals in the next sessions. TECHNICAL ANALYSIS Silver (XAG/USD) still shows strong bullish momentum, aided by key technical indicators. The price is still above the nine-day and 14-day Exponential Moving Averages (EMAs), solidifying the rising trend. The 14-day Relative Strength Index (RSI) remains above the 50 mark, suggesting continuous buying pressure. Silver is in an upward channel, with resistance at $33.10 and a breakout level at $33.40. On the downside, immediate support is at $32.08 (nine-day EMA), then at $31.85 (14-day EMA) and $31.60 (channel support). A drop below this level would invalidate the bullish contention, leaving silver vulnerable to further losses towards $28.74, the December low.  FORECAST Silver (XAG/USD) is still in a robust bullish trend, with the metal trading above significant technical levels. The metal’s ability to break above the immediate resistance of $33.10 could set the stage for further gains towards the four-month high of $33.40. A continued break over this level can initiate further buying pressure, leading silver to $34.00 and higher. This bullish view is further supported by the price remaining above the nine-day and 14-day Exponential Moving Averages (EMAs), and the 14-day Relative Strength Index (RSI) still above 50. As long as silver trades within the rising channel, there is every reason for the upward momentum to continue, with fresh highs expected if market sentiment continues to remain bullish. Even with silver’s robust bullish momentum, risks of a decline are present if key support levels are breached. The initial key support is at $32.08 (nine-day EMA), then $31.85 (14-day EMA) and the lower edge of the rising channel at $31.60. A breach below this key area may undermine the bullish setup and lead to further falls. If silver dips below $31.60, it could come under selling pressure, leaving the price vulnerable to further corrections towards $30.50 and possibly the five-month low of $28.74 in December. Volatility in the market, changes in investor sentiment, or surprise economic data releases may trigger downward movements. Traders must be on their guard and watch these support levels closely for trend reversals.

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Commodities Silver

Silver Price Forecast: XAG/USD Jumps to Three-Month Highs as Risk-Off Sentiment Increases, Global Trade Uncertainties Rise, Hits $32.38

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  • February 5, 2025
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Silver prices have increased to a three-month high of $32.38. Increasing risk-off sentiment due to global trade and economic uncertainties has been the cause of this surge. In the recent past, with China introducing fresh tariffs on US imports, the tensions between the US and China have raised the demand for the safe-haven assets, including Silver. Silver is also being catalysed further by the US Dollar technical pullback. In addition to major central banks, including the ECB, BoC, and PBoC, turning dovish, the threat of US Federal Reserve rate cuts will continue to make Silver an appealing asset. The market now awaits US Nonfarm Payrolls (NFP), which might dictate the Federal Reserve’s next move in terms of monetary policy and the future of Silver. KEY LOOKOUTS • Ongoing fresh tariffs from China over US imports further fuel market uncertainty, increasing demand for safe-haven Silver as concerns grow over global economics. • Technical pullbacks in the US Dollar, DXY, are a positive facilitator for Silver due to a weaker USD making the metal more desirable among investors. • Dovish monetary policies by major central banks, including a potential rate cut by the Fed, work to increase appeal for Silver as the non-yielding safe-haven asset. • The upcoming NFP report will be crucial in shaping the Fed’s interest rate decisions, potentially influencing Silver’s price direction. Silver prices continue to gain momentum as global economic uncertainties and trade tensions between the US and China drive demand for safe-haven assets. The weakening US Dollar, experiencing a technical pullback, has further supported Silver’s bullish trend, making it more attractive for investors. The dovish policies of major central banks, including the expected rate cuts from the Federal Reserve, have further increased the appeal of Silver as a non-yielding asset. Market participants now look forward to the US Nonfarm Payrolls (NFP) data, which may significantly influence the policy direction of the Federal Reserve and may further affect the price trajectory of Silver in the coming sessions. Silver prices are growing as the rest of the global trade tensions strengthen and a US Dollar weakening strengthens demand for a safe haven, while dovish central bank policies further increase attractiveness to Silver; investors await an upcoming US Nonfarm Payrolls data to seek direction. • XAG/USD hits $32.38 because of safe haven demand rising among global economic fears. • China takes new tariffs for US imports by imposing new fees, fueling risk-off risk and strengthening prices for Silver. • A technical pullback in the US Dollar (DXY) makes Silver more attractive to investors. • Rate cuts and easing policies from major central banks, including the Fed, ECB, and BoC, make Silver more attractive. • Markets expect at least two Fed rate cuts this year, which may push non-yielding assets like Silver higher. • The jobs report next week may affect Fed policy decisions and Silver’s price trend. • Investors continue to seek safe-haven assets such as Silver amid ongoing geopolitical and economic risks worldwide. Silver prices have moved to a three-month high of $32.38, influenced by growing global trade uncertainties and a risk-off market sentiment. The ongoing US-China trade tensions, with China imposing fresh tariffs on US imports, have increased demand for safe-haven assets like Silver. At present, the current technical pullback of the US Dollar has created more room to push Silver even higher. And with the recent dovish tones from the Fed, ECB, and other main central banks on interest rates cuts, the asset is gaining support as a no-yielding haven. XAG/USD Daily Price Chart TradingView Prepared by ELLYANA Market participants have been keenly observing the soon-to-be-reported US Nonfarm Payrolls that may be critically influential in affecting the Federal Reserve’s future policy on monetary money. A rather weak jobs report would make more probable Fed’s rate cuts further driving Silver upward, and, conversely, a strong jobs report could help limit the ascent. Widespread global growth concerns such as trade disruption, slowing down further, are enhancing demand for silver as a means of hedging against uncertainty. As investors balance these factors, Silver is well positioned for additional volatility in the coming sessions. TECHNICAL ANALYSIS Silver (XAG/USD) remains highly bullish, trading near its three-month high at $32.38. Here, major technical indicators indicate more upside to be seen in this metal, as it has already broken above the resistance of $32.00 and transformed the same into a key support area. The Relative Strength Index is still in the bullish zone but is approaching overbought levels, so a short-term consolidation may be expected before another leg higher. The 50-day and 200-day moving averages are in a sustained uptrend, as the price remains well above both. If Silver continues its uptrend, then $32.80 and $33.50 are the next resistance levels to watch, while a downside correction may find support at $31.80 and $31.50. Traders will be keeping a close eye on market sentiment and economic data for confirmation of the ongoing bullish trend. FORECAST Silver’s bullish momentum is strong as it trades near its three-month high of $32.38, with multiple factors supporting further gains. The weakening US Dollar, along with expectations of Federal Reserve rate cuts, is boosting investor interest in non-yielding assets like Silver. Besides geopolitical tensions- the US-China trade war, in particular and slow-down in world economies also promote safe haven. If silver sustains at this level and breaches above $32.00 then next on cards are the marks of $32.80 and $33.50. This might pull price up and surpass resistance toward a psychological $34.00 in case of affirmation of a dovish US Federal Reserve’s monetary policy posture within the forthcoming months. Silver’s strong uptrend may face the risk of taking profits and technical corrections. With the Relative Strength Index (RSI) closing in on the overbought territory, the pullback cannot be ruled out. If it fails to sustain above the support level of $32.00, it might face downward pressure with key supports at $31.80 and $31.50. A more robust US Nonfarm Payrolls (NFP) report or hawkish communications from the Federal Reserve

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Commodities Silver

Silver Price Forecast: XAG/USD Strengthens Amid Bullish Momentum, Eyes Key Resistance Levels

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  • January 29, 2025
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Silver, XAG/USD, maintains its upward trajectory, trading near the weekly high in the mid-$30.00s, and technical indicators suggest further growth. The metal is facing key resistance at $31.00, aligned with the 100-day SMA. A break above this point could trigger a rally towards $31.50 and $32.30. A sustained move above these levels would confirm that the recent correction from its multi-year peak in October 2024 has actually ended, leading to further upside. However, powerful support remains at the 200-day SMA near $30.00 and a breakdown below here could leave silver susceptible to further downside risks, potentially re-testing the $29.00 area. KEY LOOKOUTS • Silver faces strong resistance near the 100-day SMA at $31.00. A decisive breakout above this level could trigger a rally towards $31.50 and the $32.30 region. • The 200-day SMA near the $30.00 psychological mark acts as a crucial support. A break below this level could push silver toward the $29.00 region, intensifying bearish pressure. • Technical indicators are showing renewed positive traction. If buyers can hold the reins, silver may continue to rally, marking the end of its corrective decline from its October 2024 peak. • A sustained move above key resistance levels may trigger short-covering rallies, leading to further upside movement, with the next targets set around $32.00 and the December swing high of $32.30. Silver (XAG/USD) remains bullish, trading near its weekly highs in the mid-$30.00s. A major resistance level at $31.00, coinciding with the 100-day SMA, is a critical barrier; a strong breakout above this level may propel the price towards $31.50 and the $32.30 area. On the downside, significant support at the 200-day SMA around $30.00 acts as an important cushion to bulls, while a breach of the low might place silver vulnerable to further selloffs to the $29.00 region. Technically, some positive momentum in indicators implies the corrective drop from the multi-year peak in October 2024 might have bottomed out. A sustained push above resistance could fuel short-covering rallies, reinforcing the bullish outlook for silver in the near term. Silver (XAG/USD) trades with a bullish bias near its weekly highs, facing key resistance at $31.00. A breakout could trigger a rally towards $31.50 and $32.30, while strong support at $30.00 may prevent further declines. Technical indicators suggest renewed bullish momentum, hinting at potential short-covering rallies. • Silver continues to rise, trading near the weekly high in the mid-$30.00s with positive technical signals. • The 100-day SMA at $31.00 is a key level; a breakout could drive prices toward $31.50 and $32.30. • The 200-day SMA near $30.00 remains strong support; a break below this level could expose silver to further downside risk. • A breakthrough above resistance might lead to short-covering, pushing the advance toward multi-month highs. • If silver can reach $31.50 or higher, then key points will be $32.00 and the high from December at $32.30. • A break beneath the low of the week around $29.70 might continue the downside toward $29.10 and $28.70, a multi-month low from December. •Chart indicators in daily time frames indicate gaining bullish momentum; the corrective phase most likely is already over. Further upside is possible. Silver (XAG/USD) maintains a positive sentiment and trades higher towards its weekly high in the mid-$30.00s. The metal has a crucial resistance area at $31.00, marked by the 100-day SMA. The metal’s potential to break above $31.00 and trigger further upside toward $31.50 and the December high $32.30 could be realized. Technical indicators on the daily chart are gaining positive momentum, reinforcing the bullish outlook. A successful breakout above these levels would indicate that the recent corrective decline from its October 2024 peak has run its course, paving the way for additional upside movement. XAG/USD Daily Chart TradingView Prepared by ELLYANA On the downside, strong support lies at the 200-day SMA, near the $30.00 psychological level. A breakdown through this support will increase bearish pressure, threatening silver with deeper losses toward $29.70 and potentially $28.70-a multi-month low hit in December. Traders should watch these important levels closely, as price action near them will define the metal’s next big move. In general, silver’s technical is bullish, as short-covering rallies are possible when resistance levels are cleared. TECHNICAL ANALYSIS Silver (XAG/USD) exhibits strong bullish momentum based on technical indicators, with price action nearing the key resistance level of $31.00, aligned with the 100-day SMA. A decisive breakout above this level could trigger further upside toward $31.50 and $32.30, confirming a continuation of the bullish trend. The RSI and MACD indicators on the daily chart are gaining positive traction, signaling buying strength. However, if it fails to break above $31.00, it could result in consolidation or a pullback towards the strong support near the 200-day SMA at $30.00. A breakdown below this level could expose silver to further declines toward the $29.70-$29.00 zone, which could intensify bearish pressure. Traders should look for volume spikes and momentum shifts to confirm potential breakouts or reversals. FORECAST Silver (XAG/USD) is trading at its weekly highs with a positive technical outlook, indicating strong bullish momentum. The immediate resistance level to watch is $31.00, marked by the 100-day SMA. A decisive breakout above this level could trigger a short-covering rally, pushing prices toward the $31.50-$31.60 region. Further buying interest can take the rally to the December swing high of $32.30 and, if the momentum continues, silver may even touch the $32.50-$33.00 range in the near term. The technical indicators are also bullish with RSI and MACD, showing that the recent correction from its October 2024 peak is done and silver will continue to rally. Even though there is a positive bias, silver remains vulnerable to downside risks if it fails to break above the key $31.00 resistance. There is strong support at the 200-day SMA near the psychological level of $30.00 that could prevent a deeper pullback. A convincing break below this level might trigger a decline toward $29.70, the weekly low. If selling pressure builds further, silver can fall to around $29.10-$29.00 and

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