Silver Price Outlook: Rising Demand and Central Bank Influence

Market Overview

Silver (XAG/USD) extended its rally on Thursday, trading around $28.78 during the Asian session. The metal’s ongoing strength is largely attributed to surging global demand, particularly for industrial applications.

Growing Industrial Demand and Supply Constraints Drive Prices

• Industrial consumption of silver now accounts for 64% of global usage, marking a sharp rise from last year’s 50%, representing a 19% increase.
• Mining companies such as Yukon Metals and First Majestic have reported strong performance, fueling the rally.
• According to experts from Sprott Money and Investopedia, monitoring the gold-silver ratio will be crucial.

The Silver Institute forecasts that industrial demand will drive 58.3% of global silver consumption in 2024, equating to approximately 1.2 billion ounces.

Interest Rate Cuts from ECB and Fed Could Further Boost Silver

• Speculation of interest rate cuts by major central banks is increasing silver’s attractiveness.
• The ECB is expected to reduce rates by 25 basis points.
• U.S. inflation data shows a CPI drop, heightening the likelihood of a Fed rate cut.

Short-Term Forecast

Silver (XAG/USD) holds above $28.07, with critical resistance at $28.54. A break above this level could push prices toward $29.12.

Silver Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $28.17, up 0.21% in today’s session, showing steady upward momentum. This price holds above immediate support at $28.07, but also faces critical resistance at $28.54.