Silver Daily Forecast: Analyzing Silver's Movement Towards $30.20 Resistance

Market Overview of Silver Prices

Silver (XAG/USD) is navigating a bearish phase as it trades around $29.75, hitting an intra-day low at $29.36. This downturn reflects the correlation with gold prices, which has entered a bearish trend.

Despite this drop, the near-term outlook for silver seems promising, largely influenced by expectations that the Federal Reserve could lower interest rates. According to the CME FedWatch tool, there’s a 28.5% probability of a 50-basis point rate cut, while a 25-basis point reduction is more anticipated.

Surge in Global Silver Demand and Indian Imports

• Silver prices are expected to rise in 2024 due to increased global demand.
• India plays a pivotal role, importing 4,554 tons of silver in the first half of 2024—a sizable increase from 560 tons last year.
• This uptick can be attributed to industrial demand for solar panel production and electronics.
• The Silver Institute predicts a 2% increase in global silver demand, with India as the largest consumer.

Short-Term Price Forecast for Silver

Current trading positions silver near the $29.75 mark, with pivotal support at $29.70. A move below this level may lead to a drop to $29.39, whereas breaking above $30.20 could target $30.50.

Technical Analysis of Silver's Price Movement

On the 4-hour chart, silver is consolidating between $29.75 and $30.20. Support at $29.70 is vital, with a potential decline towards the 50 EMA at $29.39 if breached. Conversely, surpassing the $30.20 resistance could lead to higher targets at $30.50 and beyond.

Traders should prioritize monitoring the $29.70 support level, as its breach may indicate a bearish trend, while holding above could foster a bullish pattern.