Silver (XAG) Daily Forecast: Festive Demand and Safe-Haven Appeal Drive Gains Above $32

Market Overview

Silver (XAG/USD) extended its bullish momentum on Friday, climbing to an intraday high of $32.27, nearing the upper end of its weekly range. The metal’s positive traction is driven by robust festive demand and a surge in safe-haven purchases.

Silver’s rise follows a similar trend in gold, reflecting strong buying interest ahead of key Indian festivals such as Navratri.

“Festive seasons typically trigger increased buying in precious metals, especially in India, a major market for both gold and silver,” noted Rahul Sharma, commodities strategist at India Bullion Association. “This year’s demand is further boosted by favorable market conditions and retail consumer sentiment.”

Festive Season Drives Strong Silver Demand

The Navratri festival, a significant period for purchasing precious metals in Hindu culture, has stimulated robust demand from stockists and retail consumers alike.

This has led to a notable uptick in silver prices, as buyers ramp up purchases in anticipation of further price increases. The ongoing festivities have helped silver gain more than 2% this week alone.

Adding to the bullish trend, a weakening Indian rupee has made local silver prices more attractive, pushing buyers to invest ahead of potential price hikes.

Analysts believe that demand for jewelry and investment-grade silver will likely continue to support prices in the near term.

“The ongoing festival season is expected to lift silver prices even further, potentially driving international prices up as well,” said Sharma.

Geopolitical Tensions Enhance Safe-Haven Appeal

Beyond festive demand, escalating geopolitical tensions have added to silver’s appeal as a safe-haven asset. Heightened conflict in the Middle East, coupled with concerns of a broader regional confrontation, has pushed investors toward gold and silver as a hedge against uncertainty.

Analysts suggest that these geopolitical factors, along with economic stimulus measures in China, could lead to further gains in silver.

“Given the volatile global landscape, silver may outperform gold in the medium term as both industrial and investment demand rise,” remarked John Davis, senior analyst at Global Commodities Research.

With rising demand in both Indian and global markets, silver appears well-positioned for continued strength in the weeks ahead.

Short-Term Forecast

Silver (XAG/USD) is poised for further gains if it breaks above $32.24 resistance. Immediate support lies at $31.78. Expect volatility amid robust demand and geopolitical risks.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is trading at $32.18, up 0.51% for the session, and maintaining a positive bias above its pivot point of $31.98. The metal is forming an ascending triangle pattern, signaling a potential bullish continuation if prices can break through the immediate resistance at $32.24.

A sustained move above this level could push silver higher to test the next resistance levels at $32.46 and $32.64.

On the downside, support stands at $31.78, aligned with the 50-day EMA, and further at $31.61. If prices dip below $31.98, the short-term trend may turn bearish.

With solid technical support and bullish momentum building, a breakout above $32.24 could trigger strong buying interest.