Silver (XAG) Forecast: Prices Near Multi-Year High as Gold Approaches Record Levels

Silver Soars: Multi-Year High Within Reach

Silver prices are rallying sharply on Wednesday, approaching the multi-year high of $32.96 reached on October 4. A breakthrough above this level could trigger a rapid ascent towards the next significant resistance at $34.35.

At 12:34 GMT, XAG/USD is trading $31.90, up $0.39 or +1.24%.

Gold and Silver: The Safe-Haven Surge

Both silver and gold are benefiting from a risk-off sentiment in the market. Gold is trading near its all-time high of $2,685.64, with the current session high at $2,682.88. The precious metals market is finding support from weakening equities and declining bond yields.

Economic Data: The Key to Fed’s Next Move

Traders are closely monitoring upcoming U.S. economic data releases, including retail sales, industrial production, and weekly jobless claims. These reports will provide crucial insights into the Federal Reserve’s potential timeline for interest rate cuts. San Francisco Federal Reserve Bank President Mary Daly has indicated that the central bank remains on track for rate reductions this year, assuming economic data aligns with expectations.

Bullish Forecasts: Industry Experts Predict Record Highs

Delegates at the London Bullion Market Association’s annual gathering have forecasted a substantial increase in precious metal prices over the next 12 months. They predict gold will rise to $2,941 and silver will surge to $45 per ounce, representing significant upside potential from current levels.

Global Markets: Yields Drop, Currencies Shift

The 10-year U.S. Treasury yield has dipped slightly, currently at 4.012%, making non-yielding assets like silver more attractive. In the currency markets, the British pound has tumbled to a two-month low following softer-than-expected inflation data, while the euro remains under pressure ahead of the European Central Bank meeting.

Silver’s Shining Outlook: Bullish Signals Ahead

The confluence of factors supporting precious metals prices suggests a bullish outlook for silver in the near term. With global economic uncertainties, geopolitical tensions, and the potential for interest rate cuts, silver appears poised to test and potentially break above recent highs. Traders should closely monitor key resistance levels and upcoming economic data releases for confirmation of this bullish trend.