Despite strong U.S. economic indicators and a strengthening U.S. dollar, silver prices (XAG/USD) recovered from initial losses to stabilize around $30.4955, later peaking at $30.5025.

This resilience in silver prices, despite data suggesting potentially sustained high U.S. interest rates, can be attributed to escalating geopolitical tensions in the Middle East, which traditionally boost demand for safe-haven assets like silver.

Geopolitical Unrest Fuels Silver Prices

The ongoing crisis in the Middle East supports silver prices. Recent escalations have displaced over 900,000 Palestinians, leading to critical shortages of basic necessities and healthcare services in Gaza.

The substantial casualties and injuries reported reinforce silver’s status as a preferred safe-haven investment during geopolitical instability.

Impact of Strong US Economic Data on Silver Prices

Conversely, strong U.S. economic data has buoyed the U.S. dollar and shifted expectations towards enduring higher interest rates. The probability of the Federal Reserve maintaining the current interest rate into September has increased significantly, reflecting heightened market anticipation of sustained monetary tightness.

Recent declines in U.S. jobless claims and improvements in manufacturing and service sectors underscore a robust economy, traditionally pressuring precious metal prices.

Silver Price Forecast: Technical Outlook

Currently, silver trades at $30.39, marking a 0.88% increase. Technical analysis reveals a pivot point at $30.05, with immediate resistance at $30.97 and further resistance at $31.60 and $32.39.

Conversely, support lies at $29.44, extending down to $28.79 and $28.10.

The Relative Strength Index (RSI) is at 46, indicating neutral momentum, while the 50-day Exponential Moving Average (EMA) at $30.76 poses significant resistance.

The prevailing technical stance suggests a bearish outlook below $30.97; however, breaching this resistance might pivot the trend to bullish. Traders should focus on these critical levels for potential market shifts.