Silver (XAG) Price Forecast: Will $30 Break Amid Geopolitical Tensions and Inflation?

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Silver prices (XAG/USD) are trading at $29.60, marking a 0.12% increase as the metal continues to draw investor attention.

Ongoing geopolitical tensions and concerns over inflation have amplified the appeal of safe-haven assets, with silver benefiting as a more affordable alternative to gold. Additionally, expectations for economic recovery in China and proactive government policies are bolstering optimism, making silver a preferred hedge against global uncertainty.

The demand for silver is also supported by its dual role as an industrial commodity and a store of value. Inflationary pressures and a weaker global economic outlook have made the metal increasingly attractive, with further gains anticipated if these factors persist.

Silver Technical Analysis: Key Levels to Watch

Silver’s bullish momentum is evident as it holds above the pivot point at $29.34, signaling strong market sentiment. Immediate resistance is positioned at $29.88, with further upside targets at $30.43. On the downside, key support levels are at $28.78 and $28.32, providing a safety net for potential pullbacks.

  • 50 EMA: Silver remains above its 50-day Exponential Moving Average at $29.51, reinforcing short-term bullish momentum.

  • 200 EMA: The 200-day EMA at $30.37, however, highlights potential longer-term resistance, requiring a sustained breakout to confirm further gains.

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

A decisive move above $29.88 could attract additional buying interest, paving the way toward the $30.43 level. Conversely, a drop below $29.34 may trigger selling pressure, with $28.78 acting as the first line of defense.

Broader Market Factors Supporting Silver

Silver’s rise is underpinned by multiple macroeconomic and geopolitical factors. Record central bank gold purchases are creating a supportive environment for precious metals, and a recovering Chinese economy could further drive demand. Additionally, subdued U.S. Treasury yields—at 4.24% for the 2-year and 4.56% for the 10-year—enhance silver’s appeal as a non-yielding asset.

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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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