Silver (XAG) Daily Forecast: Trump Election Polls Boost Dollar, Adding Pressure on Silver

Market Overview

Silver prices (XAG/USD) slipped to $31.77 on Wednesday, as the market turned bearish following a stronger U.S. dollar and increased confidence in a Trump victory in the ongoing U.S. presidential election.

Silver initially found support around the $32.20 mark but faced selling pressure amid the bullish dollar, which tends to make dollar-denominated assets like silver more expensive for international buyers.

The dollar’s rise has been driven by a mix of favorable polling data for former President Donald Trump and strong U.S. economic figures.

The U.S. dollar gained ground in response to election polls showing a lead for Trump over Vice President Kamala Harris in key battleground states.

Fed Rate Decision and Economic Data Add Pressure

The upcoming Federal Reserve interest rate decision on Thursday also adds to market uncertainty. The CME FedWatch Tool indicates a 96.4% probability that the Fed will announce a 25-basis-point rate cut, which would mark a shift in monetary policy in response to inflation concerns.

Analysts expect this to bolster the U.S. dollar further, creating additional headwinds for silver.

On the economic front, October’s U.S. ISM Services PMI exceeded expectations at 56.0, while the S&P Global Services PMI registered at 55.0, signaling a robust services sector.

These numbers further strengthened the dollar, adding downward pressure on silver prices as the dollar’s rally makes it harder for silver to sustain gains.

Looking Ahead

With silver’s immediate support around $32.02, any sustained drop below this level could signal further declines. Immediate resistance remains at $32.20, and a break above this could offer a temporary reprieve.

However, with rising U.S. Treasury yields and growing confidence in Trump’s chances, the outlook for silver remains challenging.

Investors will be closely monitoring the Federal Reserve’s decision for any cues on the dollar’s trajectory, as it could significantly impact silver’s short-term trend.

Short-Term Forecast

Silver (XAG/USD) may face continued pressure if it remains below $32.02. Immediate support is at $31.54, with resistance at $32.30, while dollar strength adds bearish momentum.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) recently fell to $31.77, down 1.5%, as sellers took control following a bearish engulfing candle on the 2-hour chart—a clear signal of selling pressure.

The immediate pivot point lies around $32.02, and until prices reclaim this level, the outlook remains bearish. Immediate resistance stands at $32.30, with additional resistance at $32.58 and $32.88.

On the downside, support is seen at $31.54, with further levels at $31.31 and $31.10. The 50-day EMA at $32.57 and the 200-day EMA at $32.85 reinforce a downward bias, as both averages sit above the current price. With the RSI near oversold territory, any recovery might be brief.

For now, silver’s momentum leans bearish, and a close below $31.54 could trigger further declines.