The silver price (XAG/USD) has maintained its bullish momentum, hovering above $28 which has turned into a support zone. This increase can be attributed to a mix of geopolitical tensions that have been escalating in recent months and economic indicators. The ongoing escalation in the Middle East has contributed to the rise in the price of Silver and the price of Gold, as silver is often considered a safe-haven asset during periods of heightened regional volatility.

During the first two weeks of this month, the bullish momentum in XAG was quite strong, with the uptrend gaining pace and SILVER buyers pushing the price close to $30. The 20 SMA (gray) was acting as support on the H4 chart, which showed that the uptrend was quite strong. last week the upside momentum slowed but moving averages continued to hold as support during pullbacks on this timeframe, with the 50 SMA (yellow) taking over.

Silver Chart H4 – MAs Keeping XAG Well-Supported

So the bullish momentum slowed last week in Silver and the price bounced mostly within a range, between the 50 SMA above $28 and $29, but it closed near the top of the range, which shows that traders feel safer to leave their traders over the weekend near the top than at the bottom.

Increased Photovoltaic Demand Helping Keep Silver Bullish

The surge in silver industrial demand is largely attributed to the investment in the green energy project, which is anticipated to persistently drive industrial silver higher in 2024 and beyond. Specifically, Chinese demand is projected to increase by over 40%, surpassing 260 million ounces.

This growth is primarily fueled by the expansion of green applications in the country. The unexpected rise in photovoltaic (PV) capacity and the accelerated adoption of next-generation solar cells have led to a 20% increase in global electrical and electronics demand. Additionally, other green-related sectors such as power grid development and vehicle electrification have also contributed to the uptick in demand for silver.

Silver Live Chart