Silver (XAG) Daily Forecast: Powell’s Speech Looms—Can XAG Hold Above Key Support at $29?

Market Overview

Despite facing pressure from weaker industrial output data in China, silver prices (XAG/USD) maintained their upward momentum, drawing further bids around the $29.21 level and reaching an intraday high of $29.31.

This resilience can be attributed to ongoing geopolitical tensions, which have bolstered silver’s appeal as a safe-haven asset.

Market Focus Shifts to Powell’s Speech

In addition to geopolitical factors, silver prices are gaining traction ahead of Federal Reserve Chair Jerome Powell’s anticipated speech at the Jackson Hole Symposium.

Market participants are eagerly awaiting Powell’s signals regarding potential interest rate cuts in the U.S., which could further influence silver’s trajectory.

China’s Economic Slowdown Poses Risks to Silver Demand

On the economic front, recent data from China’s National Bureau of Statistics highlights a slowdown in the world’s largest manufacturing hub. While industrial production showed some growth, it was slightly weaker than the previous quarter.

This slowdown, particularly in traditional infrastructure investment, raises concerns about reduced industrial silver consumption, which could impact prices in the longer term.

Short-Term Forecast

Silver prices (XAG/USD) continue to display resilience, holding near $29.21 with key support at $28.82. A potential breakout above $29.35 could trigger further bullish momentum, targeting resistance levels at $29.71 and $30.37.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is showing some strength, currently trading at $29.21, with immediate support around $28.82. The 50-day Exponential Moving Average (EMA) at $29.19 is a crucial level to watch, as a crossover above $29.35 could signal a continuation of the buying trend.

Immediate resistance is expected at $29.71, with further resistance at $29.97 and $30.37. On the downside, if Silver fails to hold above $29.35, it could revisit support levels at $28.43 and $28.04.

Conclusion: Bearish below $29.35, but a break above this level could strengthen the bullish momentum, pushing prices higher.