Silver (XAG) Daily Forecast: Will Strong Indian Demand Drive Prices Past $30.24?

Market Overview

Despite a strong US dollar and declining gold prices, silver (XAG/USD) has defied expectations by maintaining its bullish momentum. It is currently trading at around $30.02.

The metal even reached an intraday high of $30.08, driven by rising demand for safe-haven assets amid increasing geopolitical tensions in the Middle East.

India’s Growing Demand for Silver Fuels Price Increase

A significant factor behind silver’s strong performance is the surge in demand from India, where silver imports are expected to rise sharply this year.

This increase is largely driven by the booming solar panel and electronics industries. As India ramps up its renewable energy projects, the demand for silver—a critical material in solar panels—is soaring.

India’s growing middle class also plays a key role in this trend. As more households achieve financial stability, there’s a rising demand for modern appliances, electronics, and cars, all of which require silver for production.

For instance, air conditioning is becoming more common in Indian homes, leading to increased energy consumption and, consequently, a greater demand for silver in electronics.

Silver Prices Supported by Safe-Haven Demand and US Economic Signals

The ongoing geopolitical tensions, particularly in the Middle East, have bolstered silver’s appeal as a safe-haven asset. Although fears of a broader conflict have eased somewhat, concerns remain, especially regarding potential threats from Iran. This uncertainty has kept silver in high demand, even as the US dollar strengthens.

Additionally, US economic factors are influencing silver prices. The Federal Reserve has hinted at possible interest rate cuts, which could further support silver by making it more attractive relative to interest-bearing assets.

Traders are also closely watching upcoming US economic data, including the Consumer Confidence report and the Housing Price Index, which could provide further direction for silver prices.

Short-Term Forecast

Silver remains bullish above $29.85, with potential gains toward $30.24. However, a break below $29.85 could lead to a short-term pullback, targeting $29.35.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) trades at $30.02, down 0.09%. The key pivot point is $29.85, which now acts as strong support after previously serving as resistance. If prices remain above this level, the outlook is bullish, with immediate resistance at $30.24, followed by $30.59 and $30.90.

On the downside, immediate support is $29.35, with further support at $29.06 and $28.81. The 50-day EMA at $29.26 and the 200-day EMA at $28.90 reinforce the uptrend, supporting the buying momentum.

As long as silver holds above $29.85, we could see further gains, but a break below this level could trigger a sharper sell-off.