Silver Price Forecast: XAG/USD remains on the defensive below $27.50 on easing Middle East tensions

Source Fxstreet
Apr 24, 2024 06:42
  • Silver price turns red around $27.30 on Wednesday, despite the weaker USD. 
  • A relaxation in Middle East geopolitical tensions drags silver price to a two-week low. 
  • The rising demand for white metal in industrial uses supports the XAG/USD. 

Silver price (XAG/USD) trades on a softer note near $27.30 during the early European session on Wednesday. The easing of tensions in the Middle East and the risk-on environment cap the upside of the white metal. 

Geopolitical tensions in the Middle East, particularly in Israel and Iran, have boosted the price of precious metals in recent weeks. However, those fears have largely dissipated as Iran and Israel have signaled they are not interested in a wider war after attacks earlier this month. This, in turn, leads traders to reduce their precious metal positions and favor riskier assets. 

Furthermore, the robust economy and rising inflation pressures in the United States have triggered the expectation that the US Fed might delay its easing cycle this year, which weighs on the US Dollar-denominated silver. Investors will take more cues about inflation trajectory and interest rate outlook from the US Q1 Gross Domestic Product (GDP) number on Thursday and the Core Personal-Consumption Expenditures (PCE) Price Index, the Federal Reserve's (Fed) preferred gauge of underlying inflation, due later on Friday.

On the other hand, rising demand for silver, driven by its industrial uses in photovoltaics, semiconductors, and electric vehicle charging, along with a significant deficit in silver supply, might boost the white metal for the time being. According to the Silver Institute, industrial demand for silver set a record in 2023 of 654.4 million ounces, owing to sustained structural gains from green economy applications. 

XAG/USD

Overview
Today last price 27.29
Today Daily Change -0.02
Today Daily Change % -0.07
Today daily open 27.31
 
Trends
Daily SMA20 27.19
Daily SMA50 25.12
Daily SMA100 24.18
Daily SMA200 23.74
 
Levels
Previous Daily High 27.38
Previous Daily Low 26.67
Previous Weekly High 29.02
Previous Weekly Low 27.62
Previous Monthly High 25.77
Previous Monthly Low 22.51
Daily Fibonacci 38.2% 27.11
Daily Fibonacci 61.8% 26.94
Daily Pivot Point S1 26.86
Daily Pivot Point S2 26.41
Daily Pivot Point S3 26.15
Daily Pivot Point R1 27.57
Daily Pivot Point R2 27.83
Daily Pivot Point R3 28.28

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Silver Price Analysis: Meets key long-term resistance at $30.00Silver (XAG/USD) price is rising up in an ascending channel and on Thursday reached just shy of the $30.00 mark, a significant resistance level.
Source  Fxstreet
Silver (XAG/USD) price is rising up in an ascending channel and on Thursday reached just shy of the $30.00 mark, a significant resistance level.
placeholder
Silver Price Analysis: XAG/USD gains marginally, clings above $28.00Silver's price advanced 0.28% on Monday, courtesy of falling yields in US Treasuries and a softer US Dollar.
Source  Fxstreet
Silver's price advanced 0.28% on Monday, courtesy of falling yields in US Treasuries and a softer US Dollar.
placeholder
Silver Price Analysis: XAG/USD recovers after testing $27.00 psychological levelSilver price registers modest gains despite rising US Treasury bond yields and a strong US Dollar.
Source  Fxstreet
Silver price registers modest gains despite rising US Treasury bond yields and a strong US Dollar.
goTop
quote