SILVER (XAG/USD) FORECAST
SILVER (XAG/USD) FORECAST
Silver prices are approaching a critical technical level at $33.11, with bullish momentum building as traders anticipate a breakout.
This potential move is supported by a combination of factors, including favorable economic conditions and technical indicators.
Silver is testing a significant resistance level at $33.11. A breakout above this level could signal the start of a new bullish phase, with potential targets at $34.87 and $35.40.
Conversely, failure to break this resistance may lead to a pullback to support levels around $32.53 or $31.81.
The recent surge in gold prices to a record high has positively impacted silver, as both metals often move in tandem.
This correlation suggests that silver may continue to benefit from the safe-haven demand driving gold's rally.
The Federal Reserve's stance on interest rates plays a crucial role in silver's performance.
A dovish Fed, characterized by rate cuts or pauses, tends to weaken the U.S. dollar and reduce the opportunity cost of holding non-yielding assets like silver, thereby supporting its price.
Silver's industrial demand, particularly in electronics and solar panels, is a key factor in its price dynamics.
Recent tariff relief measures may boost industrial activity, leading to increased demand for silver and supporting its price.
