Silver (XAG) Daily Forecast: Safe-Haven Appeal Strengthens Amid Russia-Ukraine Escalation

Market Overview

Silver (XAG/USD) prices hovered around $31.00 per ounce on Friday, showing signs of recovery amid growing global tensions and market dynamics.

Concerns over the escalating Russia-Ukraine conflict are driving safe-haven demand, with Russian President Vladimir Putin warning about the use of U.S. and British weapons by Ukraine.

While geopolitical risks add to silver’s appeal, traders are equally focused on domestic economic factors in the U.S.

US Dollar Strength and Fed’s Policy Impact on Silver

The strengthening U.S. dollar has added pressure on silver prices. The dollar’s gains follow a surprising drop in U.S. Initial Jobless Claims, which fell to 213,000 for the week ending November 15, below the previous 219,000 and an expected 220,000. The data suggests a resilient labor market, reducing urgency for the Federal Reserve to cut interest rates.

Federal Reserve officials, including Chair Jerome Powell, emphasized caution over rate cuts, citing inflation risks. A recent survey indicated that while 90% of economists expect a 0.25% rate cut in December, slower adjustments are anticipated in 2025 due to inflationary concerns.

Boston Fed President Susan Collins also stressed that elevated inflation requires a cautious approach, potentially limiting silver’s upside as rate cuts support economic activity but strengthen the dollar, making metals pricier for foreign buyers.

Geopolitical Tensions Support Safe-Haven Demand for Silver

Rising geopolitical instability continues to support silver as a safe-haven asset. President Putin’s remarks on heightened risks in the Russia-Ukraine conflict, coupled with reports of hypersonic missile use, amplify investor anxiety.

Historically, silver has benefited during periods of geopolitical tension, as its safe-haven status attracts investors seeking refuge from market volatility.

Short-Term Forecast

Silver prices are expected to hold near $31.00 as safe-haven demand offsets U.S. dollar strength. Key resistance lies at $31.53, while support at $30.75 underpins the bullish outlook.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver prices are trading at $31.01, up 0.69% on the day, reflecting a cautious bullish sentiment. Immediate resistance is at $31.53, with further levels at $31.83 and $32.15. On the downside, immediate support is at $30.75, followed by $30.52.

The 50-day EMA at $30.95 offers a key short-term support level, while the 200-day EMA at $31.37 serves as a critical resistance point.

The pivot point at $31.14 is pivotal; holding above this level reinforces the bullish outlook, while a break below could trigger selling pressure. The RSI indicates neutral momentum, leaving room for a potential test of $31.53.