Silver (XAG) Daily Forecast: Will Prices Rebound Above $29.34 After Dip?

Market Overview

Despite rising demand, Silver (XAG/USD) extended its downward trend during Thursday’s Asian session, reversing much of the previous day’s gains. The metal’s value as an industrial and electrical resource has increased, driving demand that could support prices.

However, silver lost momentum, dipping to an intraday low of $29.34. This decline is likely tied to the bearish trend in gold prices.

As gold weakens, investor interest in precious metals, including silver, often wanes, reducing demand. Since silver and gold typically move in tandem, gold’s downturn directly impacts silver prices.

Silver Prices Soar as Demand Rises and Supply Tightens

Silver prices have surged this year, with projections suggesting they could climb from $30 to $100 per ounce in the coming years.

This increase has triggered a wave of new listings on the ASX, as companies aim to capitalize on the booming silver market.

Silver’s diverse applications, from industrial use to renewable energy, are fueling its rising value.

Global attention is growing, with companies like Andean Silver resuming operations in Chile and Sun Silver exploring opportunities in Nevada.

Silver’s role in renewable energy, especially in solar panels, combined with its status as a critical mineral, is driving demand.

Essential Points

• Silver Holds Above $29: Supported by a weakening US Dollar and speculation of a Fed rate cut.
• Fed Rate Cut Expectations: Weaker US job growth and FOMC support raise chances of a 50-basis-point cut, boosting silver.
• Geopolitical Tensions Elevate Silver: Ongoing Israel-Hamas conflict drives investors to silver as a safe-haven asset amid uncertainty.

Short-Term Forecast

Silver (XAG/USD) remains bullish above $29.34, targeting $29.83, but risks a downturn if it falls below this level.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver is currently holding above the key demand zone around $29.35, with immediate resistance at $29.83. If silver manages to break above this resistance level, it could target the next resistance levels at $30.38 and $30.73.

On the downside, support is found at $28.81, followed by $28.43 and $28.03. The 50-day EMA at $28.79 and the 200-day EMA at $28.75 are both below the current price, reinforcing the bullish trend.

Silver remains bullish above $29.34, with potential upside toward $29.83 and beyond. However, a break below $29.34 could trigger a sharp selling trend.