Silver (XAG) Daily Forecast: Triple-Top Breakout at $30.73 Could Target $31.30

Market Overview

Silver (XAG/USD) extended its rally on Friday, trading around $30.70 during the Asian session. This upward momentum is largely attributed to heightened geopolitical concerns.

Russian President Vladimir Putin’s recent warning about potential nuclear-capable missile strikes against Ukraine, following large-scale attacks on Ukraine’s energy infrastructure, has fueled market uncertainty.

Meanwhile, the Middle East has seen some stabilization with a ceasefire between Israel and Hezbollah holding steady. This truce, facilitated by diplomatic efforts from the U.S. and France, has allowed residents to return to their homes.

However, Israel’s ongoing military operations in Gaza remain a key geopolitical risk, contributing to volatility in global markets and influencing commodity prices like silver.

Dollar Weakness and Fed Speculation Drive Silver Demand

The weakening U.S. dollar is another significant factor behind silver’s rise. As silver is priced in dollars, a weaker greenback makes it more affordable for international buyers, boosting demand. Additionally, the U.S. bond market gained traction after President-elect Donald Trump nominated Wall Street veteran Scott Bessent as Treasury Secretary, which has increased investor confidence.

Economic data also plays a pivotal role in market sentiment. October’s U.S. core Personal Consumption Expenditure (PCE) prices met expectations, fueling speculation of a Federal Reserve rate cut in December.

According to the CME FedWatch Tool, there is now a 66.5% probability of a 25 basis point cut, up from 55.9% the previous week. However, stronger-than-expected economic performance has tempered these expectations, leaving the Fed’s future path uncertain.

Outlook for Silver Prices

Silver continues to benefit from its safe-haven status amid global instability. The combination of geopolitical tensions, dollar weakness, and cautious optimism regarding Fed policies positions silver for further gains, though any shift in economic or political developments could quickly alter its trajectory.

Markets remain focused on upcoming U.S. data to gauge the Fed’s next steps and their impact on precious metals.

Short-Term Forecast

Silver’s short-term outlook remains bullish above $30.73, supported by geopolitical tensions and dollar weakness. A breakout could target $31.09, while failure may trigger correction to $30.21.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $30.72, up 1.63%, as it tests a critical resistance level at $30.73. This level aligns with both a downward trendline and a triple-top pattern, making it a key pivot for the metal’s next move. The 50-EMA at $30.30 offers robust near-term support, while the 200-EMA at $30.62 reinforces a cautious bullish outlook.

Immediate resistance lies at $30.87, with further levels to watch at $31.09 and $31.30. Conversely, a break below $30.45 could signal bearish momentum, targeting supports at $30.21 and $29.98.

If silver decisively breaches $30.73, expect bullish momentum to accelerate, but failure to clear this hurdle may lead to a short-term correction.