Silver (XAG) Daily Forecast: Key Support Near $34 as Election Uncertainty Grows

Market Overview

Silver prices (XAG/USD) saw a pullback on Wednesday, settling around $34.30 after a strong 2% gain the previous day. The initial surge was largely driven by safe-haven demand as investors braced for potential market volatility ahead of the U.S. presidential election.

As uncertainty grows, especially in tight elections, precious metals like silver often see increased interest.

However, news from Axios that Israeli Prime Minister Netanyahu may pursue diplomatic efforts in the Middle East appears to have tempered demand, momentarily impacting silver’s momentum.

Diwali Festivities Drive Retail Demand for Silver in India

In India, Diwali’s Dhanteras holiday on October 29 fueled a surge in silver buying, particularly in Mumbai’s famed Zaveri Bazaar. The holiday is traditionally marked by metals purchases, and this year, silver was in high demand.

Vikas Singh, MD and CEO of MMTC-PAMP, noted that demand for both gold and silver has risen by 35% compared to last year, supported by festive shopping and the upcoming wedding season.

Silver’s global price rose to $34.50, reflecting this retail demand and reaching near 12-year highs.

U.S. Election and Economic Data Keep Silver Market Volatile

The U.S. presidential race has added to silver’s allure as a safe asset, with Vice President Kamala Harris and Republican nominee Donald Trump separated by just one percentage point in recent polling.

A Reuters poll shows Harris with 44% support to Trump’s 43%, highlighting the race’s tight nature and fueling investor caution. The election uncertainty has kept precious metals in focus, with silver prices benefiting from heightened market anxiety.

Beyond the election, silver prices are also supported by a weaker U.S. dollar and lower Treasury yields. A weaker dollar makes silver more attractive to international buyers, boosting demand.

Additionally, investors are eyeing upcoming U.S. economic reports, including Q3 GDP data and employment changes, which could shape silver’s outlook. Next week’s session of China’s parliament, set for November 4-8, will also be key, as the market anticipates potential economic stimulus measures.

This mix of factors creates a cautiously optimistic environment for silver, positioning it as a go-to safe asset amid global uncertainties.

Short-Term Forecast

Silver’s outlook remains cautiously bullish above $34.13, with potential gains toward $34.48 if support holds. A dip below this level may signal further downside risk.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at $34.28, down 0.53% as it hovers around a key support level near $34.13. This pivot point is crucial; if silver can hold above it, the upward trendline around $34.15 suggests room for a bullish push toward resistance levels at $34.48 and $34.67.

The 50-day EMA at $33.94 reinforces this support zone, giving buyers a bit more confidence. However, if prices dip below $34.13, it could trigger a sharper decline, targeting supports at $33.91 and possibly $33.72.

For now, maintaining above $34.13 keeps silver’s outlook optimistic, but traders are watching closely for any break below this pivotal level.