Silver (XAG) Daily Forecast: Seasonal Demand vs. Market Caution; Key Breakout Level $32.88

Market Overview

Silver (XAG/USD) prices slid to $32.25 on Tuesday, down from a recent high of $32.50, as investors exercised caution in the lead-up to the U.S. presidential election.

The downward trend was largely influenced by a stronger U.S. dollar, bolstered by a close race between candidates and anticipation surrounding the upcoming Federal Reserve meeting.

Despite the pullback, analysts suggest that the political uncertainty could ultimately lend support to silver, a traditional safe-haven asset, as investors seek stability in volatile times.

Chinese Stimulus Expectations Add Complexity to Silver Market

In China, mounting expectations for stimulus measures could bolster demand for silver, particularly as the National People’s Congress (NPC) meets from November 4-8.

“Investors are closely monitoring any announcements from the NPC, as additional stimulus could significantly impact industrial demand for silver,” notes Xiao Chen, an analyst at Huatai Futures.

China’s substantial role in global manufacturing underscores its influence on silver demand, and any major economic support packages could serve to stabilize prices.

Opportunities Amid Market and Seasonal Demand

While silver faces short-term headwinds, the current price dip offers opportunities for buyers. With wedding season approaching in countries like India and Pakistan, demand for silver jewelry traditionally increases, providing an added boost.

According to market experts, this seasonal demand may help counterbalance some of the volatility expected from the U.S. election and Federal Reserve announcements.

Election Uncertainty and Federal Reserve Decision Loom

With Republican candidate Donald Trump and Vice President Kamala Harris neck-and-neck in the polls, market jitters over potential policy shifts have led to cautious trading.

Many investors anticipate a modest rate cut from the Federal Reserve, which would likely support silver prices by making the metal more affordable to hold.

As U.S. election results unfold and China’s stimulus decisions emerge, silver’s demand dynamics remain poised for shifts.

Short-Term Forecast

Short-term, Silver (XAG/USD) could find support around $32.31 amid election uncertainty and potential Chinese stimulus. A break above $32.88 may signal renewed bullish momentum.

Silver (XAG/USD) Price Forecast: Technical Outlook

Silver (XAG/USD) is holding steady around $32.53, up 0.22%, showing resilience above its pivot point at $32.31. The 4-hour chart suggests a cautious bullish outlook, with immediate resistance at $32.88.

If silver can clear this level, it may target the next resistances at $33.08 and $33.37. However, the 50-day EMA at $32.68 could present a hurdle for further upward movement.

Support is strong at $32.04, with additional floors at $31.80 and $31.55. A break below $32.31, though, could shift momentum downward, sparking selling pressure.

Watch for a push above $32.88 for renewed buying interest or a drop below the pivot for a bearish reversal.