Key Takeaways:
- Silver prices are on a moderate uptrend, reaching a peak of approximately $29.020 due to growing preference for precious metals amid global uncertainties.
- During economic or geopolitical turmoil, investors turn to silver which boosts its market value.
Influence of Escalating Middle East Tensions on Silver Prices (XAG/USD)
Although silver’s trajectory is gently bullish, uncertainties from the Middle East crisis complicate its path. Recent aggressive actions by Iran have heightened regional tensions.
Federal Reserve Speculations and Their Effects on Silver Prices (XAG/USD)
Speculations on the Federal Reserve’s interest rate policy in the U.S. are shaping the silver market. Expectations of postponed interest rate cuts could strengthen the U.S. dollar, potentially capping gains in silver prices.
Impact of Strong U.S. Retail Sales on Silver Prices (XAG/USD)
Strong U.S. retail sales may contribute to ongoing inflation, a stronger dollar, and downward pressure on silver prices due to reduced demand for dollar-denominated commodities.
Silver Price Forecast: Technical Outlook
Silver’s technical analysis indicates a pivot point at $27.58 with potential bullish trends above this level and resistance points at $29.05, $29.80, and $30.68. However, breaching below could lead to a sell-off testing support levels at $26.54, $25.74, and $25.00.
The Relative Strength Index (RSI) at 45 suggests Silver is neither overbought nor oversold. The 50-day Exponential Moving Average (EMA) at $27.85 further emphasizes the significance of the pivot point.
Maintaining above the EMA and pivot point indicates a positive outlook, while breaking below these levels could accelerate downward momentum.