Ongoing violence and humanitarian crises in Gaza are raising global concerns. Despite international condemnation and significant civilian casualties, the conflict continues, with the US approving over $20 billion in new weapons sales to Israel.
This instability may limit silver’s losses, as geopolitical tensions often boost demand for safe-haven assets like silver.
These developments could support silver prices, balancing out the declines driven by expectations of further US interest rate cuts and a stronger dollar.
Silver (XAG/USD) Price Forecast: Technical Outlook
Silver (XAG/USD) is trading at $27.75, down 0.66% on the day, struggling to break above the pivot point at $27.96. The chart shows a downward trend line acting as a significant resistance around this level.
The recent formation of doji and spinning top candles near the pivot suggests weakening bullish momentum, indicating that sellers may soon take control.
The 50 EMA at $27.72 and the 200 EMA at $28.66 confirm this bearish sentiment. If silver fails to break above $27.96, it could continue its decline towards $27.21 or even $26.56. A break above $27.96 could shift the trend upward.
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.