Gold also rose on Monday, hitting new highs on geopolitical uncertainties, including tensions in the Middle East and speculation surrounding the US election results. Now that the major central banks are cutting interest rates, gold’s appeal as a safe haven has increased. Lower interest rates, combined with global risk factors, support the continued upward trend of both gold and silver, as they tend to move together due to their status as precious metals.
China’s recent economic stimulus measures, along with expected Federal Reserve rate cuts, have further strengthened gold’s appeal, although rising US Treasury yields are a limiting factor. Nevertheless, the broader environment remains supportive for both gold and silver as economic uncertainty drives investor interest in these assets.
Short-term silver market forecast
While silver faces near-term resistance at $34.35, fundamentals remain strong, especially with the Russian central bank entering the market as a buyer. The overbought numbers indicate a possible short-term pullback, especially if profit-taking occurs.
However, as long as silver remains above key levels such as the 50-day moving average, the market remains bullish. Given continued industrial demand and new central bank rates, silver could test higher levels by year-end, with upside potential if global uncertainties persist. Traders should pay attention to volatility, but the broader outlook points to continued strength in the silver market.