Silver (XAG) Daily Forecast: Key Support at $33.47 Holds—For How Long?

Market Overview

Silver began the week on a stronger note, holding above $33.00 per ounce as a strengthened U.S. dollar applied downward pressure.

This rise in dollar value comes on the back of expectations that the Federal Reserve will opt for a cautious approach to rate cuts, reducing the appeal of non-yielding assets like silver.

The safe-haven demand for the dollar has also been bolstered by ongoing geopolitical uncertainty, creating additional challenges for silver prices.

Impact of U.S. Economic Data and Dollar Strength on Silver

The U.S. dollar has gained momentum, hovering near a three-month high, driven by speculation that the Fed will cut rates by only 25 basis points in its November meeting. Recent economic data has reinforced this outlook.

In September, durable goods orders declined by just 0.8%, surpassing the anticipated 1% fall, while core orders (excluding transportation) edged up by 0.4%.

Additionally, October’s Consumer Sentiment Index, as measured by the University of Michigan, reached 70.5—a six-month peak.

This data suggests resilience in the U.S. economy, fueling expectations of modest Fed rate cuts rather than an aggressive policy shift.

Rising Treasury yields, another factor stemming from the economic data, have further supported the dollar’s strength, intensifying downward pressure on silver.

Growing Industrial Demand Provides a Cushion

Despite current headwinds, silver’s longer-term outlook remains supported by industrial demand, particularly in solar panel production and other high-tech applications.

However, recent developments haven’t significantly altered silver’s price dynamics, as dollar strength and Fed rate expectations continue to play central roles.

In conclusion, silver faces a challenging environment with a strengthened dollar and higher yields potentially keeping it under pressure, though industrial demand may provide some stability in the near term.

Short-Term Forecast

Silver (XAG/USD) faces short-term pressure from a stronger U.S. dollar and rising Treasury yields, holding support above $33.47. Industrial demand may help cushion further declines.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is holding steady at $33.56, showing a mild 0.45% increase as it finds support from an upward trendline around $33.47. The 50-day EMA at $33.63 suggests slight overhead resistance, while the 200-day EMA at $33.22 provides a solid floor for any dips.

Immediate resistance is seen at $33.98, with further levels at $34.30 and $34.55 if bullish momentum builds.

However, if prices fall below $33.47, the trend could reverse, potentially pushing silver toward support at $33.14 and further down at $32.88. For now, silver remains bullish above $33.47, but caution is warranted near key resistance levels.