Silver Prices Hold Strong at $29.30 Amid China Slowdown and Geopolitical Tensions

Despite weaker-than-expected industrial output data from China, silver (XAG/USD) managed to sustain its upward momentum, drawing significant bids around the $29.24 level and reaching an intraday high of $29.31.

Silver Price Chart - Source: Tradingview

The metal’s resilience in the face of unfavorable economic data highlights its role as a safe-haven asset, especially amid ongoing geopolitical tensions. According to market analysts, silver’s appeal is “underpinned by a combination of economic concerns and geopolitical uncertainties, making it an attractive option for risk-averse investors.”

Geopolitical Tensions Lend Support to Silver Prices

The ongoing geopolitical deadlock in the Middle East, particularly the conflict between Israel and Hamas, has further bolstered silver’s appeal as a safe-haven investment. The stalled negotiations for a ceasefire have added a layer of uncertainty to global markets, which has, in turn, increased demand for silver.

“The market’s appetite for safe-haven assets like silver grows in times of geopolitical strife,” said a financial expert, emphasizing that these global tensions have contributed to the metal’s steady performance.

China’s Economic Slowdown Poses Risks to Silver Demand

On the other hand, the slowdown in China’s economy could pose challenges for silver demand in the long term. Recent data from China’s National Bureau of Statistics revealed a mixed picture: while industrial production grew, it was slightly weaker than in the previous quarter.

Manufacturing investment, especially in high-tech sectors, showed an uptick, but infrastructure investment, crucial for silver consumption, has decelerated.

“The slowdown in infrastructure investment, coupled with weak domestic demand, could eventually weigh on industrial silver consumption, potentially leading to softer prices,” remarked an economist familiar with the data.

Silver (XAG/USD) Price Forecast: Key Levels to Watch

As of now, silver is trading at $29.21, with immediate support identified around the $28.82 mark. The 50-day Exponential Moving Average (EMA) at $29.19 is a crucial level that traders are closely watching.

Silver Price Chart - Source: Tradingview

A breakout above $29.35 could indicate a continuation of the bullish trend, with potential resistance levels at $29.71, $29.97, and $30.37. However, if silver fails to hold above $29.35, it might retrace towards the $28.43 and $28.04 support levels.

Conclusion: The outlook remains cautious. Silver appears bearish below $29.35, but a decisive move above this level could trigger renewed buying interest, driving prices higher.

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ABOUT THE AUTHOR See More
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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