Silver (XAG) Daily Forecast: Key Resistance at $30.10—Will Prices Break Higher?

Market Overview

Silver prices (XAG/USD) continued their upward momentum, reaching $30.06 this week, fueled by strong global demand and expectations of a Federal Reserve rate cut.

The price surge is driven by several factors, including silver’s growing industrial use and rising gold prices, which often lead investors to seek silver as a more affordable alternative.

China’s Demand and Renewable Energy Expansion Fueling Growth

China, the world’s largest silver consumer, has significantly increased its purchases, bolstering the metal’s price. Silver’s critical role in renewable energy, particularly in the production of solar panels, has further amplified demand. As global investments in renewable energy projects grow, silver consumption in the industry is expected to rise.

Nord Precious Metals Mining Inc. recently reported that metallurgical tests from its Miller Creek tailings revealed a 32% increase in silver grades. Historic assays showed an average of 213 grams per tonne, but recent findings indicate a higher average of 282 grams per tonne.

This suggests that the true silver content is much higher than initially estimated, potentially driving up market interest and prices.

Federal Reserve Rate Cut Speculation Adding Momentum

Anticipation that the Federal Reserve might cut interest rates by 50 basis points next week is another factor supporting silver prices. The CME FedWatch Tool indicates a 41% chance of such a cut, up from just 14% earlier this week. Lower interest rates generally make non-yielding assets like silver more attractive to investors, boosting demand.

Recent U.S. economic data, including a rise in the Producer Price Index (PPI) and an increase in jobless claims, has intensified speculation about the Fed’s next move. Global trends are also at play. The European Central Bank recently lowered its main interest rate, and the Bank of England may follow suit, further enhancing silver’s appeal as a hedge against inflation and economic uncertainty.

As silver continues to gain from industrial demand and economic developments, investors are closely watching the metal, especially amid global shifts toward renewable energy and potential monetary policy changes.

Short-Term Forecast

Silver’s bullish momentum continues near $30. Immediate resistance is at $30.12, with support at $29.19. A break above $30.12 could signal further gains, while failure may lead to a correction.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $29.99, up 0.27%, with short-term momentum suggesting a cautious outlook. The price is hovering near the key pivot point at $29.69, with immediate resistance at $30.12.

A break above $30.12 could push silver toward the next resistance levels at $30.53 and $30.92. However, if it fails to hold above $30, the price may see a bearish correction, especially given the triple top pattern forming on the chart.

Immediate support sits at $29.19, followed by $28.70. The 50-day EMA at $28.78 and the 200-day EMA at $28.82 provide strong medium-term support. A break below $29 could shift momentum downward.