Silver (XAG) Daily Forecast: Will $30.74 Hold, or Is a Break Below Imminent?

Market Overview

Silver (XAG/USD) edged down to $30.52 on Monday, reflecting a minor technical correction akin to recent movements in gold. The dip comes as the US Dollar weakened following President-elect Donald Trump’s nomination of Scott Bessent for Treasury Secretary.

This news has eased market uncertainty, contributing to the dollar’s pullback, with the Dollar Index (DXY) hovering near 107.00, down from Friday’s two-year high of 108.07.

Demand for Wedding Jewellery Boosts Silver Appeal

Silver’s affordability and versatility are driving its rising popularity as a wedding jewellery choice. Offering high-quality designs at a fraction of gold’s price, silver enables couples to create bespoke pieces without overspending.

Its adaptability pairs well with gemstones and enamels, catering to various themes and styles.

The symbolic significance of silver as a timeless and durable material further cements its appeal. This growing demand could bolster silver prices as the market recognizes its increasing role in modern weddings.

US Economic Data and Fed Policy Shape Silver’s Path

Strong US economic data, including a Services PMI of 57.0 and a Composite PMI of 55.3 for November, underscores robust private sector growth, the highest since April 2022.

Falling jobless claims and a resilient economy have tempered expectations for Federal Reserve rate cuts, with futures pricing a 50.9% chance of a quarter-point cut, down from 61.9% last week.

While these factors support the dollar, silver remains positioned as a potential beneficiary of market uncertainty. Ongoing geopolitical tensions and inflation risks could reignite safe-haven demand for silver, providing a pathway for recovery.

Silver’s interplay between technical corrections, jewelry demand, and macroeconomic influences suggests potential upside, particularly if market volatility persists.

Short-Term Forecast

Silver is trading at $30.82, testing critical support at $30.74. A rebound could target $31.17, while a break below may expose prices to $30.44 or lower.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is trading at $30.82, down 1.67%, as it tests key support at $30.74, a level closely aligned with the 50 EMA at $31.03. The price remains within an upward trendline, but a break below $30.74 could signal increased selling pressure, targeting $30.44 and potentially deeper support at $30.18.

Immediate resistance is seen at $31.17, with further targets at $31.53 and $31.85 if buying momentum builds.

The formation of a Doji candle near the pivot point suggests market indecision, leaving room for either a rebound or further downside. Traders should monitor $30.74 carefully, as it serves as a critical tipping point for near-term price direction.