Silver Price Forecast: Can $30.16 Resistance Trigger a Breakout?

Silver prices showed resilience on Friday, trading near $29.83, up 0.05%, as the market consolidated around its $29.79 pivot.

The precious metal’s dual role as a safe-haven and industrial asset keeps it in focus amid ongoing geopolitical tensions and global economic uncertainties.

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Geopolitical Risks and Dollar Impact on Silver Prices

Silver’s steady performance is supported by heightened geopolitical tensions, including conflicts in Eastern Europe and the Middle East. These events increase silver’s appeal as a safe-haven asset. However, the strengthening US Dollar, with the Dollar Index (DXY) climbing above 108.00, has capped silver’s gains. A stronger dollar makes silver and other dollar-denominated commodities more expensive for international buyers, limiting further price momentum.

Despite these challenges, silver benefits from its critical role in clean energy technologies and electronics. As global clean energy initiatives expand, industrial demand for silver continues to rise, offsetting some of the pressure from a strong dollar.

Technical Indicators Signal Potential for Breakout

Silver’s 4-hour chart highlights a symmetrical triangle pattern, indicating potential for a breakout. The 50-day Exponential Moving Average (EMA) at $29.71 offers short-term support, while the 200-day EMA at $30.29 suggests overhead resistance may limit bullish momentum. Immediate resistance lies at $30.16, with potential gains extending to $30.58 if buyers maintain momentum.

On the downside, support is observed at $29.41 and $28.82. A break below these levels could signal bearish momentum, exposing silver to further declines.

Silver Price Chart - Source: Tradingview
Silver Price Chart – Source: Tradingview

What’s Ahead for Silver?

Market participants will closely watch US economic data, including inflation reports, for signs of potential Federal Reserve policy shifts in 2025. These developments, combined with global geopolitical risks, will likely drive silver’s near-term direction. While technical indicators remain cautiously bullish, traders should monitor $29.79 for confirmation of sustained upward momentum or potential downside risks.

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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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