Silver (XAG) Forecast: Will Bulls Push Prices Past Key Resistance at $31.29?

Silver Prices Face Resistance; Traders Eye Key Technical Levels

Silver prices edged higher on Thursday, attempting to breach the resistance at $31.29. While momentum appears supportive, a sustained break above this level could target the 50-day moving average at $31.79. Surpassing this threshold would indicate stronger buying interest, paving the way for a short-term retracement to the $32.28–$32.89 range. However, with the broader trend remaining bearish, selling pressure may resurface if this zone is tested.

On the downside, support is seen at $30.61, followed by a critical level at $29.68. Major support remains at the 200-day moving average, anchored at $28.89. This technical structure highlights the delicate balance between bullish attempts and prevailing bearish control.

Gold Gains on Safe-Haven Demand

Gold rose for the fourth consecutive session, with spot prices buoyed by increased safe-haven buying. Investor sentiment was dampened after Nvidia’s subdued revenue growth outlook pressured global equities, sparking risk-off moves into precious metals. Geopolitical tensions added further support, as Ukraine’s use of advanced missiles against Russia escalated the ongoing conflict. However, these risks have yet to trigger significant price spikes, given the prolonged nature of the crisis.

Gold prices have rebounded from a two-month low of $2,536.71 in mid-November, driven by uncertainties surrounding U.S. interest rate policy. Recent Fed commentary has underscored challenges in bringing inflation back to the 2% target, adding to gold’s appeal as a hedge.

Bond Market Stalls, Dollar Strengthens

The 10-year Treasury yield dipped slightly to 4.402% on Thursday, with traders awaiting U.S. economic data and Fed speeches. The dollar index climbed, nearing last week’s one-year high of 107.07. Investors anticipate potential shifts in Federal Reserve policy, with rate cut probabilities declining to 54% for December from 82.5% a week earlier.

Market Forecast

Silver’s technical outlook suggests further consolidation unless buying strength breaches the $31.29 resistance. A move beyond $31.79 could open the door to $32.28–$32.89, but sellers are likely to defend this area aggressively. On the downside, traders should monitor $30.61 for signs of additional weakness, with $28.89 providing long-term support.

Gold’s steady climb signals continued demand under risk-off conditions, but gains may remain tempered by evolving Fed policy and geopolitical factors.