Silver prices move higher, testing $29.66
Silver prices (XAG/USD) rose to $29.66 during the session, supported by its dual appeal as a safe haven and industrial metal. Geopolitical tensions and inflation concerns have boosted demand, allowing silver to maintain its upward momentum.
Despite the robust US dollar, silver’s role in industrial applications and as a store of value has provided significant support. Analysts note that the ongoing uncertainty could remain positive for the metal, especially if inflation risks persist.
The Federal Reserve’s cautious outlook for interest rate cuts has boosted the US dollar, pushing it near a two-year high. Rising bond yields further support the dollar, creating challenges for gold and silver, which typically struggle in such an environment. However, geopolitical and economic risks are keeping investor interest in these metals alive.
Traders are keeping a close eye on upcoming U.S. economic data, including the third-quarter GDP report and the Fed’s favorite inflation gauge, the PCE Price Index, which could determine the direction of the market.
While the strength of the dollar limits the upside potential for gold and silver, demand for safe havens amid persistent market uncertainties is keeping these metals resilient.
Short-term forecasting
Gold prices are likely to remain within a range of $2,583.97 and $2,663.39, with resistance at $2,715.68 as a key breakout level. Silver consolidates around $29.67; a bullish breakout could target $30.75, while downside risks could test $28.67 amid cautious market sentiment.