Silver (XAG/USD) Forecast: Trading Strong at $31.39 Amid Geopolitical Tensions

Silver (XAG/USD) price forecast remains positive as the metal trades resiliently around $31.39, reaching an intraday peak at $31.89.

Silver Price Chart - Source: Tradingview

This upward trajectory is largely driven by a depreciating US dollar and persistent geopolitical tensions in the Middle East.

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Impact of US Dollar and Federal Reserve on Silver Prices

Looking ahead, the silver market is attuned to upcoming US economic indicators and Federal Reserve communications. Traders are particularly focused on US Consumer Confidence and upcoming speeches by Fed officials Kashkari, Daly, and Cook.

Additionally, the Core PCE Price Index will be scrutinized for inflation cues. Should the Fed adopt a more hawkish stance and inflation remains elevated, expectations for a near-term rate cut might be adjusted, potentially bolstering the US dollar and exerting downward pressure on silver prices.

Geopolitical Tensions and Silver Demand

The ongoing conflict in Gaza has also played a crucial role in silver’s demand as a safe-haven asset. Recent Israeli airstrikes, which have intensified regional instability, have pushed investors towards safer investments like silver, supporting its price amid global uncertainties.

Silver Price Technical Analysis

In technical terms, silver is currently showing a bullish signal with a 0.27% increase, trading at $31.36 on the 4-hour chart. The critical pivot point stands at $31.87, which will be essential in determining the future market direction.

Immediate resistance levels are seen at $32.39, $33.11, and $33.60.

Silver Price Chart - Source: Tradingview

Conversely, support levels are positioned at $30.95, $30.06, and $29.44. The 50-day EMA at $30.62 and the 200-day EMA at $28.66 both suggest long-term support for bullish trends.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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