Silver Price Forecast: $70 in Play as Bulls Defend Trend and Momentum Builds
Silver prices are holding firm as investors continue to rotate into hard assets amid ongoing macro uncertainty and expectations...
Quick overview
- Silver prices are stable as investors seek hard assets amid macroeconomic uncertainty and interest rate expectations.
- The dual appeal of Silver as both a defensive asset and an industrial metal is bolstered by long-term demand from clean energy investments.
- Technical indicators show a healthy bull run for Silver, with prices above key moving averages and strong momentum.
- Key resistance levels for Silver are around $70.05 and $71.70, while solid support exists at $68.20 and $66.35.
Silver prices are holding firm as investors continue to rotate into hard assets amid ongoing macro uncertainty and expectations of interest-rate changes. While all eyes are on gold, Silver has quietly been taking a stronger position as a defensive asset and as an industrial metal tied to long-term demand from clean-energy investments and electrification.
Market sentiment has remained positive because real returns are still being squeezed and the US dollar is struggling to get back on track – a combination that historically gives Silver a leg up, especially when investors are looking for something that will offer monetary protection and some growth potential.
The Big Picture Still Favors Gold and Silver
The expectation of looser monetary policies is still supporting Silver’s overall trend. Futures markets are pricing in multiple interest rate cuts over the coming year as inflation eases and signs emerge that the labour market may be losing some momentum. Low interest rates generally make non-yielding assets more attractive, whereas the weaker real returns are helping take the pressure off precious metals.
At the same time, industrial demand remains one of Silver’s biggest calling cards. The ongoing investments in solar power, electric cars, and grid infrastructure are continuing to mop up supply, reinforcing Silver’s unique dual appeal compared with gold.
Silver (XAG/USD) Technical View Confirms Strength
From a technical standpoint, Silver is currently trading at $69.50 on the 4-hour chart after consolidating following a major breakout from mid-December congestion. The price is happily sitting above the 50-day moving average at $65.30 and the 100-day moving average around $62.25, all of which suggest it’s a nice, healthy bull run.
[[XAG/USD-graph]]
The last few days have seen small candles with tiny wicks on the downside, so it’s clear the price is consolidating rather than breaking down as it did after the strong run-up. The upward trend line we’ve had going through December is still in place.
The momentum indicators are also in a good place:
- RSI is sitting at 72, so we know there is momentum building, but we’re not seeing any exhaustion yet
- Higher highs and higher lows are still in place
- That resistance at $68.20 we’ve seen is now looking like support
Some Key Levels Worth Watching
The immediate resistance levels for Silver are around $70.05, then $71.70, and then $73.40 if the momentum really starts to take off. On the downside, we’ve still got solid support at $68.20 and $66.35, where the trend and moving averages meet.
As long as the price holds above those key levels, we’re likely to see buyers jump in on pullbacks rather than triggering a deeper correction.
Trade idea: Buy a pullback to $68.30, sell at $71.80, and place your stop below $66.90.
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