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.
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.”
#Silver prices fell below the $29.30 level, a break above $29.30 would reactivate the bullish trend with the next target at $30.06
A break below $28.55 would push prices to continue falling and achieve negative targets starting with a test of the $27.62#XAGUSD #XAUUSD #forex pic.twitter.com/b1LOgmEEYA— adena smelter (@AdenaSmelter) August 23, 2024
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.
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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.
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.
