Silver Price Forecast: XAG/USD jumps above $32.00 amid the cautious mood

Source Fxstreet
May 29, 2024 07:07
  • Silver price extends its upside around $32.25 in Wednesday’s European session, up 0.50% on the day. 
  • The rising industrial demand for silver and ongoing Middle East geopolitical risks support the white metal. 
  • The upbeat US economic data and the Fed’s hawkish tone might cap the silver’s upside. 

The silver price (XAG/USD) extends the rally near $32.25 during the early European trading hours on Wednesday. The white metal trades in positive territory for the fourth consecutive day amid growing industrial demand. However, investors await the US key data this week for fresh impetus. All eyes will be on the preliminary US Gross Domestic Product (GDP) numbers for Q1 on Thursday and the Core Personal Consumption Expenditures Price Index (PCE) on Friday.

According to the Silver Institute, total industrial demand for silver is projected to rise by 9% to 711 mn oz, driven by demand from the photovoltaic sector. Additionally, UBS analysts expect a substantial shortfall in the silver market, anticipating an undersupply of 215.3 million ounces for the year, representing 17% of world demand. This, in turn, might contribute to the white metal's upside. 

Furthermore, the rising geopolitical tensions in the Middle East might boost silver prices. Israeli Prime Minister Benjamin Netanyahu has vowed to continue the war against Hamas amid international condemnation of an air strike that killed at least 45 people in Rafah on Sunday, per the BBC.

On the other hand, the stronger US economic data and the hawkish messages from the Federal Reserve (Fed) might cap the further upside for the white metal. On Tuesday, Fed Minneapolis President Neel Kashkari said that the central bank should wait for significant progress on inflation before cutting interest rates, adding that he expected no more than two rate cuts in 2024. It’s worth noting that high interest rates generally diminish investor sentiment and cause a decrease in demand for silver. 

XAG/USD

Overview
Today last price 32.28
Today Daily Change 0.18
Today Daily Change % 0.56
Today daily open 32.1
 
Trends
Daily SMA20 29.25
Daily SMA50 27.77
Daily SMA100 25.45
Daily SMA200 24.38
 
Levels
Previous Daily High 32.25
Previous Daily Low 31.24
Previous Weekly High 32.51
Previous Weekly Low 30.05
Previous Monthly High 29.8
Previous Monthly Low 24.75
Daily Fibonacci 38.2% 31.86
Daily Fibonacci 61.8% 31.63
Daily Pivot Point S1 31.48
Daily Pivot Point S2 30.86
Daily Pivot Point S3 30.48
Daily Pivot Point R1 32.49
Daily Pivot Point R2 32.87
Daily Pivot Point R3 33.49

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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