Silver prices (XAG/USD) have exhibited resilience, trading around $27.6195 and reaching an intra-day high of $27.6765. This moderate upward momentum can be ascribed to the market’s risk-averse sentiment triggered by a weaker US GDP report and heightened US inflation.

The corresponding decline in the US dollar, fueled by these underwhelming economic indicators, has also played a pivotal role in supporting silver prices.

Influence of US GDP and Inflation on Silver

Recent data from the US has painted a picture of economic deceleration coupled with increasing inflation, both of which have historically favored silver as a potential hedge against economic turbulence.

Specifically, the US GDP growth for the first quarter registered at a lower-than-expected 1.7%, a significant decrease from the previous 3.4%. The accompanying GDP Price Index advanced to 3.1%, underscoring persistent inflationary pressures.

This economic backdrop suggests a cautious stance from the Federal Reserve, potentially delaying any reductions in interest rates, thereby maintaining a strong USD which is less favorable for silver prices.

Geopolitical Dynamics and Silver’s Market Position

Despite geopolitical tensions in regions like the Middle East, which typically bolster the appeal of safe-haven assets like silver, recent developments have not drastically altered price trajectories.

The ongoing military engagements between Israel and Iran have maintained regional tensions without escalating to a level that significantly influences global market sentiments towards safe havens.

Technical Analysis and Market Forecast for Silver

From a technical perspective, silver currently trades near $27.40, with key levels to watch including a support at $26.90 and resistance at $28.00. A break below support may signal a continuation of the bearish correction, potentially aiming for a lower target of $26.00.

Alternatively, surpassing the $28.00 resistance might reignite the primary bullish trend, with objectives stretching up to $28.80 and possibly $29.80.

Given the mix of economic and geopolitical factors at play, the silver market is poised for fluctuations within the defined trading range of $26.90 support and $27.90 resistance.

Investors are advised to remain vigilant, monitoring forthcoming economic data and central bank communications, which will likely dictate the short-term price dynamics of silver.