Silver Consolidates Above $30, Targeting Higher As Safe Havens Remain in Demand
Silver dived nearly $3 last week, but the price held above $30 which shows that buyers are feeling confident keeping the price above this level now. This means that we will likely see another assault toward $33 soon, as global economic and geopolitical concerns keep safe havens in demand.
SILVER has shown strength in 2024, continuing to gain this month. Early October saw silver prices surge past May’s high of $32.50, reaching $33 following positive U.S. NFP data. Despite minor pullbacks, the overall trend remains bullish as higher lows persist. Major central banks, including the Federal Reserve, the European Central Bank, and now China, have shifted to more dovish policies, incorporating fiscal and monetary support measures. This policy easing, combined with ongoing economic uncertainty and geopolitical tensions, has driven investor interest towards safe-haven assets like silver and gold.
Silver Chart Daily – The 100 SMA Held As Support Last Week
Influence of Central Bank Policies on Silver Prices
As inflation pressures lessen, central banks have softened their rhetoric. However, sticky U.S. inflation, as indicated by the latest CPI and PPI data, has reduced the likelihood of the Federal Reserve implementing a significant 50 basis point rate cut in November. This is primarily due to strong labor market figures. Silver (XAG/USD) faced downward pressure early last week, dipping to $30.10, but the 100-day SMA (green) held firm. The price rebounded with a $1.50 rise late last week, favoring buyers in the short term. For silver to sustain its upward movement, it needs to surpass Friday’s high of $31.62, with the next resistance levels at $32.00, $32.50 (the May peak), and the year-to-date high of $32.95.
Growing Demand for Silver Amid Geopolitical and EV Market Shifts
Silver demand has increased due to rising global tensions and the expanding electric vehicle (EV) industry, which relies on silver for various components. Reflecting this demand, the UAE’s silver imports surged from $29 million in 2022–2023 to $1.7 billion in the latest fiscal year, amid concerns over rules of origin gaps.
In terms of downside risks, immediate support levels are at today’s low of $30.90 and the October low of $30.10, should selling pressure resume.
Silver Live Chart
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