Silver Prices Poised for Breakout as Traders Eye $31.46 Resistance

In addition to China’s activity, traders await critical U.S. inflation data due on Wednesday. This report will guide Federal Reserve policy decisions, with the CME Group’s FedWatch Tool reflecting an 83.4% likelihood of a 25-basis-point rate cut this month.

Lower rates reduce the opportunity cost of holding non-yielding assets like silver, potentially boosting investor interest.

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Technical Picture: Silver’s Symmetrical Triangle

Silver’s price action forms a symmetrical triangle on the 2-hour chart, signaling an impending breakout. The pivot point at $31.04 serves as a key level for the short-term outlook.

Immediate resistance at $31.46 is the first hurdle, with additional upside targets at $31.79 and $32.15 if bullish momentum prevails. On the downside, immediate support lies at $30.87, followed by $30.50 and $30.08, critical levels to watch in case of a bearish breakout.

Technical indicators show mixed signals. The Relative Strength Index (RSI) at 45.44 leans bearish but remains in neutral territory, while the 50-day Exponential Moving Average (EMA) at $31.04 reinforces the importance of this price level as a tipping point.

Traders should monitor the triangle’s apex closely, as a decisive breakout will likely set the tone for the next significant move.

Geopolitical and Economic Factors at Play

Beyond technicals, geopolitical and economic developments continue to shape silver’s outlook. The collapse of Syrian President Bashar al-Assad’s regime has injected a degree of uncertainty into global markets.

Meanwhile, the Federal Reserve appears on track for a rate cut this month as U.S. labor market data shows cooling trends. However, if inflation surprises to the upside, the dollar could strengthen, pressuring silver prices.

Key Takeaways:

• Silver’s symmetrical triangle suggests an imminent breakout, with $31.46 as the first resistance.

• A breakout above $31.46 could drive prices to $31.79 and $32.15, while support at $30.87 holds the downside.

• Geopolitical and inflation data will heavily influence silver’s next move.

Silver remains at a pivotal juncture, with traders closely watching for technical and fundamental cues to determine its next direction.