Silver (XAG) Daily Forecast: Will India’s Demand Keep Prices Above $29.35?

Market Overview

Silver (XAG/USD) defies the broader decline in precious metals, maintaining its upward trajectory and trading around $29.44. Metal resilience comes as global demand surges, particularly from the solar industry, which requires vast quantities of silver for photovoltaic cells.

India has significantly contributed to this demand, with its silver imports nearly tripling in 2024. The country imported 4,554 tons of silver in the first half of the year, a sharp rise from just 560 tons during the same period in 2023.

This increase is driven by the expanding use of silver in solar panels and electronics, as India ramps up its production capacity in these sectors.

Geopolitical Tensions Bolster Safe-Haven Appeal

While industrial demand is a primary driver, escalating geopolitical tensions also enhance silver’s appeal as a safe-haven asset. Russia’s ongoing military actions in Ukraine, which have cost Moscow an estimated £1.1 billion this week alone, and the persistent instability in other regions are pushing investors toward assets like silver.

The uncertainty is compounded by market speculation that the US Federal Reserve may cut interest rates in September, lowering the opportunity cost of holding non-yielding assets like silver.

India’s Impact on Global Silver Prices

India’s aggressive push into solar energy and electronics has become a key player in the global silver market. The country’s demand for silver drives up local prices and contributes to the global upward trend. As India continues to invest in these growing industries, its influence on silver prices is expected to remain strong.

Combining industrial demand, geopolitical risks, and potential Fed rate cuts creates a favourable environment for silver to maintain its bullish momentum.

In summary, silver’s unique position as both an industrial and safe-haven asset is helping it thrive amid economic uncertainties and global tensions, making it a standout performer in the commodities market.

Short-Term Forecast

Silver’s bullish momentum hinges on holding the $29.35 pivot. A break above $29.69 could increase prices, while a drop below $29.35 risks a sharp decline.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $29.44, up slightly by 0.05%, and holding just above a crucial pivot point at $29.35 on the 4-hour chart. The price action is currently shaped by a symmetrical triangle pattern, which indicates indecision among investors. Immediate resistance is $29.69, with further upside targets at $30.11 and $30.42.

On the downside, support is seen at $29.10, followed by $28.85 and $28.60. The 50-day EMA at $29.53 and the 200-day EMA at $29.09 are key levels to watch. As long as silver stays above $29.35, the bullish outlook remains intact, but a break below could trigger a sharp decline.