Silver (XAG) Daily Forecast: Will Silver Break Above $31.50 in the Face of Rising Tensions?

Market Overview

Silver (XAG/USD) continued its upward momentum on Monday, rising to $31.51 per troy ounce during the Asian session. The metal’s third consecutive daily gain was driven by increased safe-haven demand, as global geopolitical tensions escalate.

Investors have turned to silver as a refuge from uncertainty, pushing prices higher.

Geopolitical Concerns Boost Safe-Haven Demand

Heightened geopolitical risks are weighing on market sentiment, fueling silver’s upward trend. The U.S. Department of State voiced concerns over recent Chinese military drills in the Taiwan Strait, raising fears of further regional instability.

Additionally, tensions in the Middle East remain elevated. Although political events have taken center stage, silver continues to benefit from its status as a preferred asset in times of crisis.

“Investors tend to flock to safe-haven assets like silver when geopolitical risks heighten, as we’re seeing now,” said an analyst at a major financial institution. The metal’s rise to $31.30 signals ongoing strength amid these global uncertainties.

China’s Influence on Precious Metals

China’s economic landscape also plays a role in silver’s recent performance. The country’s military maneuvers have prompted the U.S. to express concern, adding another layer of uncertainty to the market.

Historically, silver prices tend to rise when geopolitical tensions involving major global economies intensify.

With geopolitical tensions and market volatility on the rise, silver is poised for further gains in the near term. Analysts expect the metal’s safe-haven appeal to continue drawing investors.

Outlook for Silver Prices

As geopolitical risks persist, silver is likely to maintain its upward trajectory. The current environment, coupled with market demand for secure assets, continues to support silver’s bullish outlook.

Investors will be watching closely for further developments in global tensions, as these will play a key role in determining silver’s next move.

Short-Term Forecast

Silver (XAG/USD) is set to maintain its bullish momentum, targeting $31.54 resistance. If it holds above $31.22, further gains are expected, with downside risks below $30.81.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $31.51, up 0.09%, maintaining a steady bullish trend above the pivot point at $31.22. Immediate resistance is at $31.54, with further levels at $31.88 and $32.35.

If silver breaks through these resistance levels, we could see a continuation of the uptrend. On the downside, immediate support lies at $30.81, followed by stronger support at $30.46 and $30.13.

The 50-day EMA at $31.16 is providing short-term support, while the 200-day EMA at $31.09 is reinforcing the longer-term trend.

As long as silver remains above $31.22, the outlook is positive. A drop below this level, however, could trigger a sharper sell-off.