Silver (XAG) Daily Forecast: Hits $28.48; Safe-Haven Demand Surges

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Updated: Apr 15, 2024, 08:01 GMT+00:00

Key Points:

Silver price rises to $28.48; driven by safe-haven demand and U.S. rate cut anticipations.
Industrial demand for silver boosts prices; significant use in electronics and solar sectors.
Market speculates on U.S. interest rate cuts, influencing silver's upward price trajectory.

Silver (XAG) Daily Forecast: Hits $28.48; Safe-Haven Demand Surges

Market Overview

During the Asian session, Silver (XAG/USD) experienced a notable increase of more than 2%, to trade at $28.48. This upsurge was driven by a combination of factors including safe-haven demand amidst rising geopolitical tensions, anticipations of U.S. interest rate cuts, speculative buying, and a significant uptick in industrial metals prices.

Speculative Buying and Industrial Demand

The surge in silver prices is not merely due to its status as a safe haven but also robust industrial demand and speculative trading. This demand is particularly significant in industries reliant on silver for manufacturing various electronics and solar components.

For instance, the photovoltaic industry, which consumed approximately 10% of the global silver supply in 2023, has seen a rise in demand correlating with increased solar energy initiatives.

Interest Rate Expectations Stir Market

Expectations of U.S. interest rate cuts have further fueled the rally in silver prices, aligning with broader financial market trends. These expectations were heightened following the U.S. Federal Reserve’s hint at potential rate adjustments in response to mixed economic signals, leading traders and investors to adjust their strategies in precious metals. The speculation has led to a noticeable increase in silver futures trading, with volumes up by 15% in the first quarter of 2024 compared to the same period last year.

Silver (XAG/USD) Price Forecast

Recalling the previous Silver (XAG) Daily Forecast from April 12, Silver reached the target of around $29.50 and then reversed for a correction. Let’s see what’s coming ahead.

Silver Price Chart – April 12

At the moment, Silver (XAG/USD) is trading at $28.48, reflecting a significant rise of 2.34%. The metal’s price has found support within an upward channel, indicating a bullish stance as long as it remains above the pivot point at $27.82.

Silver – Chart

Current immediate resistance levels are identified at $28.90, followed by higher barriers at $29.79 and $30.46, which could cap further gains. Conversely, support levels are established at $27.21, with further safeguards at $26.33 and $25.62. Should Silver break below these marks, particularly the pivotal $27.82, it could trigger a selling trend, altering the current bullish narrative.

Technical indicators bolster this outlook, with the 50-day Exponential Moving Average (EMA) at $27.601 and the 200-day EMA at $25.626, both supporting the upward trend. In summary, Silver remains positioned for further gains above $27.82, but a descent below this critical threshold could significantly reverse the upward momentum.

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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