Silver (XAG) Daily Forecast: Symmetrical Triangle Signals Indecision as Traders Eye $30.72

Market Overview

Silver prices saw a modest gain, trading at $30.65, as the metal hovered near a crucial pivot point at $30.72. The market has formed a symmetrical triangle pattern on the 4-hour chart, highlighting a tug-of-war between bullish and bearish forces.

This technical setup reflects growing investor indecision, with traders awaiting key economic data or central bank signals to determine the next direction for silver.

Inflation Data and Dollar Strength Weigh on Silver

The dollar’s recent rally has intensified following sticky U.S. inflation data, which continues to weigh on silver prices despite modest gains. The U.S. consumer price index (CPI) data for October highlighted persistent inflationary pressures, and producer prices rose at an annual rate of 2.4%, exceeding expectations.

These developments have lifted Treasury yields, increasing the opportunity cost of holding non-yielding assets like silver.

Silver, often considered a hedge against inflation, finds its appeal tempered by the dollar’s strength, which makes the metal more expensive for international buyers.

While markets still expect the Federal Reserve to cut rates in December, the longer-term outlook for interest rates remains murky as inflation and economic resilience keep policymakers cautious.

Short-Term Forecast

Silver’s short-term outlook hinges on breaking the $30.72 pivot point. A breakout could target $31.07, while failure risks sharp declines below $30.18 amid market indecision.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at $30.65, up 1.33% on the day, as it hovers near a critical pivot point at $30.72. The price action shows a symmetrical triangle pattern forming on the 4-hour chart, signaling a tug-of-war between buyers and sellers.

This neutral setup reflects indecision in the market, with investors awaiting a catalyst to push prices higher or lower. Adding complexity, the $30.72 level also serves as a double top, acting as a strong hurdle for bulls.

The 50-day EMA at $30.59 provides short-term support, while the 200-day EMA at $31.57 suggests stronger resistance ahead. A decisive breakout above $30.72 could spark bullish momentum toward $31.07 and beyond, while a failure to clear this level risks sharp selling below $30.18.