Silver (XAG) remains under pressure as high energy prices and a strong US dollar limit the recovery. The strength in the activity for US factories supports the industrial outlook, while slower hiring and growth in wages could give the Fed more room to pause. But inflation risks keep traders cautious ahead of the October 27-28 meeting. Silver is now moving towards the $55-$56 support zone as the price structure remains weak in the short term. In my view, the broader $50-$55 area remains critical, while a break above $72 would strengthen the recovery. This article presents the main economic drivers, the technical outlook for silver and the key technical levels that may change the outlook.
Silver Price Forecast: Oil Fuels Inflation Fears Despite Softer Jobs
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Key Points:
- Inflation risks continue to limit silver’s recovery.
- Silver could fall towards $50 if it breaks below $55–$56.
- A breakout above $72 could open the way towards $100.