Silver (XAG) Daily Forecast: Vizsla Silver’s Discovery Boosts Market Sentiment

Market Overview

Silver (XAG/USD) extended its upward momentum, trading firmly around the $29.59 mark, with an intra-day high of $29.61. The recent rally is largely attributed to a weaker U.S. dollar and growing anticipation that the Federal Reserve will begin easing monetary policy as early as September.

A softer dollar generally benefits silver, as it becomes more affordable for international buyers. The possibility of a Fed rate cut has driven renewed interest in the white metal, positioning it as a preferred asset in an uncertain economic landscape.

Vizsla Silver’s High-Grade Discovery Strengthens Market Sentiment

A significant factor contributing to silver’s recent gains is the discovery of high-grade silver and gold by Vizsla Silver Corp. at its Copala Central project in Mexico.

According to a recent SEC filing, the Vancouver-based company reported substantial mineral deposits through its ongoing drilling program, which aims to expand and further develop the site.

Discovery Highlights:

• • Vizsla Silver’s Copala Central project has confirmed high-grade silver and gold deposits.
  • The discovery is part of an extensive drilling program aimed at enhancing geological understanding and supporting potential future production.

Michael Konnert, CEO of Vizsla Silver, emphasized the strategic importance of these findings in the company’s growth plans. The market has responded positively to the discovery, with increased investor confidence expected to further bolster silver prices.

As exploration continues, further updates are anticipated, which could provide additional support to the market.

U.S. Dollar Weakness and Federal Reserve Outlook Influence Silver Prices

In addition to the discovery by Vizsla Silver, broader economic factors are also at play. The U.S. Dollar has faced downward pressure due to market expectations of a Fed rate cut. The anticipated easing of monetary policy could lead to lower interest rates, thereby reducing the opportunity cost of holding non-yielding assets like silver.

The U.S. Dollar’s weakness has made silver more attractive to non-dollar buyers. Anticipation of Federal Reserve rate cuts has increased demand for silver as a hedge against economic uncertainty.

As market participants keep a close watch on the Federal Reserve’s next moves, silver is likely to maintain its appeal, especially if economic data continue to point towards a slowing U.S. economy.

Short-Term Forecast

Silver (XAG/USD) maintains bullish momentum above $29.43, targeting $29.78 resistance. A break below could trigger a pullback towards $29.11 support.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $29.59, showing upward momentum as it inches past the 50 EMA at $29.57 on the 4-hour chart. This movement is supported by a bullish pattern known as “Three White Soldiers,” indicating a strong buying interest. The immediate resistance is near $29.78, with further resistance levels at $30.11 and $30.41. An upward trendline has been holding well, suggesting the bullish trend may continue.

However, a close eye should be kept on the pivot point at $29.43, as a break below this could signal a reversal towards the support levels of $29.11, $28.85, and $28.63. Overall, the outlook remains bullish above $29.43.