Silver (XAG) Daily Forecast: Is Silver Positioned for a Rebound Above $30.50 Support?

Market Overview

Silver (XAG/USD) is trading near a three-week low of around $30.50, extending its three-day losing streak. The precious metal’s decline is primarily driven by a strengthening U.S. dollar, which gained momentum as investor expectations for a significant Federal Reserve rate cut in November were scaled back.

The CME Group’s FedWatch Tool shows an 85% probability of a 25-basis-point rate cut, downplaying hopes for more aggressive monetary easing. This has pushed the U.S. dollar to a multi-week high, exerting downward pressure on silver prices.

Russia’s Strategy Shift and Industrial Demand Boost Outlook

Amid this downturn, Russia’s renewed interest in increasing its silver holdings could provide a long-term bullish outlook. According to a recent draft of Russia’s Federal Budget, the nation plans to expand its holdings of precious metals, including silver, gold, platinum, and palladium.

This strategic shift underscores silver’s growing significance in global markets, particularly as countries look to diversify assets amidst global economic uncertainties. Furthermore, silver’s increasing role in clean energy technologies, such as solar panels and electric vehicles, is driving industrial demand.

Investors seeking to capitalize on this trend can consider funds like the Sprott Physical Silver Trust (PSLV), which provides exposure to silver without the complexities of physical storage. Alternatively, the Sprott Physical Gold and Silver Trust (CEF) offers a balanced approach, combining exposure to both metals.

Strong U.S. Dollar and Geopolitical Developments Impact Silver

The stronger U.S. dollar, bolstered by expectations of slower Fed rate cuts and robust economic data, remains a key factor weighing on silver prices. Additionally, easing geopolitical tensions in the Middle East are reducing demand for safe-haven assets like silver.

As geopolitical risks diminish and the U.S. dollar holds firm, silver may face continued pressure in the near term.

However, the potential increase in global demand, particularly from Russia, could set the stage for a longer-term upward trend, making silver an attractive investment for industrial and precious metal portfolios.

Short-Term Forecast

Silver remains under pressure near $30.50, with resistance at $31.03. A break below $30.50 may trigger further selling, while holding above could support gains.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) trades slightly higher at $30.69, marking a 0.06% increase on the day. On the 4-hour chart, an upward trendline, combined with the $30.51 pivot point, provides strong support, indicating a potential for further gains.

This trendline, along with a bullish pink candle formation just above $30.50, bolsters the probability of sustained bullish momentum. Immediate resistance lies at $31.03, followed by $31.66 and $32.33.

On the downside, initial support is seen at $30.13, with additional supports at $29.72 and $29.18. The 50-day EMA at $31.41 currently serves as a resistance level, while the 200-day EMA at $30.52 reinforces near-term support. A break above $31.03 could push prices toward higher resistance levels, while a drop below $30.50 may trigger a sharp sell-off.