In the latest trading session, the Silver price (XAG/USD) displayed resilience, starting the week on a bullish note around the $27.3135 mark and briefly reaching a high of $27.3225. This positive trend in silver prices can be attributed to a declining US dollar, which enhances the appeal of silver to holders of other currencies by making it relatively cheaper.

US Dollar Dynamics Impacting Silver Prices

Despite a generally hawkish outlook from the US Federal Reserve on interest rates, the US dollar has struggled to maintain its strength, influenced by a prevailing risk-on sentiment which diminishes its safe-haven allure. This weakening of the dollar underpins the silver market, particularly as the Fed seems unlikely to reduce interest rates soon, given the ongoing high inflation rates.

Geopolitical Tensions Heighten Safe-Haven Appeal

Moreover, the increasing geopolitical instability, notably from the ongoing conflict in Gaza, has heightened market uncertainty, thus boosting the safe-haven demand for silver.

Recent escalations in Gaza have tragically resulted in the deaths of at least 27 Palestinians, pressing for international efforts towards ceasefire negotiations. This backdrop of uncertainty tends to drive investors towards safe-haven assets like silver.

Silver Price Forecast: Technical Analysis

Currently, silver trades slightly higher at $27.276, up by 0.20%, hovering just above its pivot point of $26.93. This positioning indicates potential for further upward movement with immediate resistance anticipated at $27.74, followed by successive resistance levels at $28.74 and $29.51.

Conversely, a pullback could see silver testing support at $26.33, with additional supports at $25.62 and $24.79 poised to halt significant declines. The technical indicators offer a cautiously optimistic view; the 50-day Exponential Moving Average (EMA) at $27.55 is just above the current price, suggesting mild bullish sentiments.

The longer-term perspective supported by the 200-day EMA at $26.59 provides a solid base, indicating sustained bullish potential above the $27.00 level. However, a fall below this threshold could pivot to a bearish outlook. Investors should closely watch these technical levels, as breaches could decisively influence the market’s direction.