Silver Price Forecast: Mixed Macro Signals Drive Compression — Is a Breakout Coming?
Silver remains in a consolidation phase as strong industrial demand and rising inflation are offset by a stronger dollar and tight policy expectations, leaving the market waiting for a breakout to define the next move.
Silver (XAG) prices are trading in a narrow range due to uncertainty in the direction amid mixed macro signals. The ISM manufacturing PMI increased to 52.7%, indicating ongoing industrial strength. On the other hand, the manufacturing prices index increased to 78.3%, indicating increasing inflationary pressure. In my view, this combination holds silver in a consolidation period in the short term. This article presents the major macro drivers, technical structure and key levels that will determine the next move in silver market.