Silver (XAG) Daily Forecast: Will Prices Rebound Above $29.34?

Market Overview

Despite rising demand, Silver (XAG/USD) extended its downward trend during Thursday’s Asian session, reversing much of the previous day’s gains. The metal's value as an industrial and electrical resource has increased, driving demand that could support prices.

Price Dynamics

However, silver lost momentum, dipping to an intraday low of $29.34. This decline is likely tied to the bearish trend in gold prices. As gold weakens, investor interest in precious metals, including silver, often wanes, reducing demand.

Silver Prices Soar as Demand Rises

• Silver prices have surged this year, with projections suggesting they could climb from $30 to $100 per ounce in the coming years.
• This increase has triggered a wave of new listings on the ASX, as companies aim to capitalize on the booming silver market.
• Companies like Andean Silver have resumed operations in Chile, and Sun Silver is exploring opportunities in Nevada.

Essential Points

1. Silver Holds Above $29: Supported by a weakening US Dollar and speculation of a Fed rate cut.
2. Fed Rate Cut Expectations: Weaker US job growth and FOMC support raise chances of a 50-basis-point cut, boosting silver.
3. Geopolitical Tensions: Ongoing Israel-Hamas conflict drives investors to silver as a safe-haven asset.

Short-Term Forecast

Silver (XAG/USD) remains bullish above $29.34, targeting $29.83, but risks a downturn if it falls below this level.

Technical Outlook

Silver is currently holding above the key demand zone around $29.35, with immediate resistance at $29.83. If silver manages to break above this resistance level, targets could be set at $30.38 and $30.73. On the downside, support is found at $28.81, followed by $28.43 and $28.03. The 50-day EMA at $28.79 and the 200-day EMA at $28.75 reinforce the bullish trend.

In summary, silver remains bullish above $29.34, with potential upside toward $29.83 and beyond. However, a break below $29.34 could trigger sharp selling.