Silver (XAG) Daily Forecast: Bullish Trend Supported by Fed Rate Cuts and China Stimulus

Market Overview

Silver (XAG/USD) is holding its ground in a narrow range between $31.80 and $31.85 during Thursday’s Asian session, maintaining its upward momentum. The precious metal remains near a four-month high achieved on Wednesday, signaling continued bullish sentiment.

The upward trend can be attributed to heightened geopolitical tensions, particularly in the Middle East and Ukraine, which have driven investors toward safe-haven assets like silver.

Additionally, recent interest rate cuts from the U.S. Federal Reserve and the People’s Bank of China (PBOC), combined with China’s major economic stimulus plan, have increased demand for silver. These macroeconomic factors are providing a strong foundation for silver’s bullish momentum.

Silver Nitrate Market Poised for Growth Amid Economic Uncertainty

On the industrial side, the global silver nitrate market is projected to grow at a compound annual growth rate (CAGR) of 5.2% from 2022 to 2032. The market value is expected to jump from $5.3 billion in 2022 to $8.8 billion by 2032.

This growth is fueled by increasing demand for silicone elastomers, especially in the automotive and construction sectors.

Silver nitrate is essential across various industries due to its strong oxidizing properties and versatility. It’s widely used in medical applications, such as a cauterizing agent, and industrial processes like electroplating.

However, regulatory challenges and fluctuating silver prices could hinder the industry’s expansion.

Short-Term Forecast

Silver (XAG/USD) holds bullish momentum above $31.89, with immediate resistance at $32.24. A break below $31.90 could trigger a deeper pullback toward $31.68.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $31.89, up 0.28%, holding steady just above its pivot point at $31.89. The white metal has found strong support at $31.68, with additional support levels at $31.50 and $31.33, while resistance is immediately ahead at $32.24. If silver breaks above this, it could target $32.47 and $32.70.

The 50-day EMA at $31.65 and 200-day EMA at $30.89 provide solid technical backing, indicating that the uptrend may continue if these levels hold. Given current momentum, silver remains bullish above $31.90. However, a break below this level could signal a shift, possibly leading to a deeper pullback.