Silver (XAG) Daily Forecast: Bullish Break Above $30.87 or Bearish Reversal?

Market Overview

Silver (XAG/USD) has halted its mild losses, stabilizing above $30.80 and reaching an intra-day high of $30.94. Despite the US dollar’s continued strength, silver remains supported by rising geopolitical tensions and mixed economic data.

Investors are now focused on Friday’s Nonfarm Payrolls (NFP) report and Federal Reserve Chair Jerome Powell’s comments, both of which are likely to influence the metal’s near-term trajectory.

Economic Data and Policy Drive Market Sentiment

The US dollar has rebounded from multi-month lows, bolstered by expectations of prolonged high interest rates. This poses challenges for silver, as rising rates diminish the appeal of non-yielding assets. However, the CME Group’s FedWatch Tool indicates a 75% probability of a 0.25% rate cut later this month, offering some relief for silver.

Additionally, the 10-year US Treasury yield has dropped to its lowest level since October, making silver an attractive alternative. Mixed economic data adds to the complexity—while the Institute for Supply Management (ISM) Manufacturing PMI rose to 48.4 in November, indicating potential economic recovery, uncertainty around US trade policies and tariffs continues to weigh on market confidence.

Geopolitical Tensions Bolster Silver’s Safe-Haven Appeal

Global tensions, including Russia’s missile strikes on Ukraine and North Korea’s alignment with Russia, have heightened investor anxiety, driving demand for safe-haven assets like silver.

Low Treasury yields further enhance silver’s appeal, offsetting some of the downward pressure from a strong dollar.

Silver remains a favored hedge against economic and political instability, supported by market volatility and persistent geopolitical risks. With investors seeking stability, silver is likely to maintain its safe-haven status in the near term.

Short-Term Forecast

Silver (XAG/USD) stabilizes at $30.80, buoyed by geopolitical tensions and lower Treasury yields. A break above $30.87 could trigger bullish momentum; support remains at $30.32.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $30.80, up 0.96%, signaling a cautious recovery while holding above its pivot point at $30.60. The metal faces immediate resistance at $30.87, with further hurdles at $31.16 and $31.48, as traders monitor whether bullish momentum can extend.

Support lies at $30.32, followed by $30.05 and $29.75, providing critical safety nets if bearish sentiment resumes.

Technical indicators reflect mixed signals. The 50-day EMA at $30.47 offers near-term support, but the 200-day EMA at $30.87 reinforces resistance, aligning with the downward trendline that continues to weigh on silver’s trajectory. A sustained break above $30.60 may boost bullish sentiment, while a drop below this level risks triggering sharper declines.