Silver (XAG) Daily Forecast: Bullish Momentum Holds Above $34.50 Support

Market Overview

Silver prices (XAG/USD) have climbed to $34.87 per troy ounce, the highest level since October 2012, as global uncertainties fuel a strong safe-haven demand. Though recent fluctuations have tempered some of the gains, the metal remains in a bullish trajectory.

Global Uncertainty Driving Demand

Investor interest in silver has surged, driven by escalating geopolitical tensions in the Middle East and the upcoming U.S. presidential election. A Reuters/Ipsos poll shows Vice President Kamala Harris leading former President Donald Trump by a narrow margin, prompting market volatility.

Silver, traditionally seen as a hedge against economic uncertainty, has become an attractive asset for those seeking stability ahead of the November 5 election.

Central Bank Policies Support Silver Momentum

Increased monetary easing by major central banks has also played a key role in silver’s rise. The People’s Bank of China (PBoC) and the European Central Bank (ECB) have both implemented rate cuts, driving greater interest in precious metals. The Bank of Canada (BoC) is anticipated to follow suit with a 50-basis-point rate cut in its next meeting, which could further boost demand for silver.

Rising Industrial and Military Demand

Silver’s bullish outlook is also supported by its growing use in military applications. Analysts predict that military consumption of silver could soon surpass that of other sectors like electronics and renewable energy.

With governments globally increasing defense spending, demand for silver is expected to climb further.

Local Festivities and Chinese Demand Boost Silver Consumption

In addition to global demand, local factors are adding upward pressure on silver prices. India’s festive and wedding seasons are driving a surge in purchases, as jewelers increase their silver stock.

In China, recent economic stimulus measures have bolstered expectations of increased demand for silver as a low-cost investment option, contributing to the metal’s growing appeal.

Silver’s outlook remains robust, as a mix of geopolitical, economic, and industrial factors sustain demand for the precious metal.

Short-Term Forecast

Silver’s short-term forecast remains bullish, with prices supported by key levels at $34.50. Immediate resistance stands at $35.06, while strong buying continues above the 50-day EMA at $34.17.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver prices have dipped slightly to $34.67, down 0.52%, but remain within a strong upward trend supported by key technical levels. The pivot point at $34.50 acts as a crucial support, and as long as silver stays above this mark, the overall sentiment remains bullish.

Immediate resistance sits at $35.06, with further resistance levels at $35.48 and $35.88. On the downside, watch for support at $33.93, with the next support levels at $33.46 and $33.01.

The 50-day EMA stands at $34.17, keeping silver in a favorable buying zone, while the 200-day EMA at $32.75 signals broader strength. A break below $34.50 could lead to sharper selling, but for now, silver holds its bullish outlook.