Silver (XAG) Daily Forecast: 42.4% Year-to-Date Surge as Supply Deficit Looms

Market Overview

Silver has emerged as the standout performer in the precious metals sector, achieving an extraordinary 42.4% gain from January through October 2024, according to recent data from the World Gold Council.

Analysts project that prices, currently around $31.30 per ounce, could climb past $40 per ounce by year’s end. This significant price action underscores silver’s unique position as both an industrial commodity and a safe-haven asset.

Industrial demand accounts for a staggering 71% of silver’s total fabrication needs, driven by its critical role in renewable energy technologies like solar panels.

“Silver supply will move into a deficit, possibly before the end of this year, and expand thereafter,” said Rhona O’Connell, head of market analysis at StoneX, pointing to tightening supply dynamics as a key driver of price appreciation.

Industrial Renaissance Fuels Demand

Unlike gold, which serves primarily as a store of value, silver’s dual purpose as both a precious metal and an industrial necessity has positioned it uniquely in the market. Data from

The Silver Institute indicates consecutive market deficits over the past two years, with 2024 expected to continue this trend. Supply constraints in key mining regions like Mexico and rising electrification demand are tightening the market further.

“As silver and copper fundamentals become increasingly driven by the demand for electrification and the energy transition, we are seeing increased correlation patterns between silver and copper,” noted Sprott, a Canadian precious metals investor.

Investment Opportunities and Outlook

Silver offers diverse investment avenues, from silver-backed ETFs and physical bullion to equities in mining and streaming companies. Scotiabank analysts emphasize the metal’s dual role, making it an attractive option for portfolios seeking exposure to both industrial growth and precious metals.

Market experts predict that silver’s outperformance could extend into 2025, supported by three primary factors:

• Global monetary policy shifts favoring lower interest rates.
• Growing renewable energy adoption, particularly solar.
• Supply deficits in major mining regions.

Short-Term Forecast

Silver trades at $31.37, holding above the $31.25 pivot. Immediate resistance at $31.55, with targets at $31.85 and $32.15. Watch $30.99 for short-term support.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at $31.37, up 0.65%, showing steady bullish momentum on the 4-hour chart. The price is holding above its pivot point at $31.25, which serves as a key level to watch. A break above the immediate resistance at $31.55 could open the door to $31.85, with $32.15 as the next major target.

On the downside, immediate support sits at $30.99, with further levels at $30.59 and $30.18 providing a safety net if the trend reverses.

The 50-day EMA at $30.80 reinforces the bullish trend, while the 200-day EMA at $31.52 could act as a resistance ceiling. A sustained move above $31.25 strengthens the outlook, but any dip below this pivot could trigger sharper selling pressure.