Silver Prices Surge Amid Global Uncertainty and Demand

Market Overview

Silver prices (XAG/USD) have climbed to $34.87 per troy ounce, the highest level since October 2012, as global uncertainties fuel a strong safe-haven demand. Though recent fluctuations have tempered some of the gains, the metal remains in a bullish trajectory.

Global Uncertainty Driving Demand

Investor interest in silver has surged, driven by escalating geopolitical tensions in the Middle East and the upcoming U.S. presidential election. A recent poll indicates significant market volatility.

Central Bank Policies Support Silver Momentum

Increased monetary easing by major central banks has also played a key role in silver’s rise. The People’s Bank of China (PBoC) and the European Central Bank (ECB) have both implemented rate cuts, driving greater interest in precious metals.

Rising Industrial and Military Demand

Silver’s bullish outlook is also supported by its growing use in military applications, as analysts predict rising consumption from this sector due to increased defense spending globally.

Local Festivities and Chinese Demand Boost Silver Consumption

Local factors, such as India's festive and wedding seasons, along with recent economic stimulus measures in China, are bolstering silver demand further.

Short-Term Forecast

Silver’s short-term forecast remains bullish with prices supported by the crucial $34.50 level. Immediate resistance stands at $35.06, with continuous strong buying above the 50-day EMA at $34.17.