Silver Price Forecast: XAG/USD rises to near $28.00, tracking rally in gold

Silver price follows the rally in gold as global central banks increase their reserves.
The price of Silver has advanced to its highest level since June 2021.
The eased geopolitical situation in the Middle East could have limited the advance of Silver price.

Akhtar Faruqui FXStreet

Silver price advances for the third consecutive session, trading higher to near $28.00 per troy ounce during the early European hours on Tuesday. This surge in Silver price mirrors the rally in gold, driven by heightened consumer and industrial demand. Global central banks increasing their reserves in gold have also contributed to the increased appetite for precious metals.

Furthermore, the demand for non-yielding assets like silver is bolstered as US Treasury yields correct after two days of gains. At present, the 2-year and 10-year yields on US Treasury bonds stand at 4.78% and 4.39%, respectively.

Traders eagerly await the release of the US Consumer Price Index data scheduled for Wednesday. It is anticipated that the US headline CPI will accelerate in March, while the core measure is expected to show a cooling down. The industrial outlook for metals received a boost from strong manufacturing data from top consumer China and projections for increased solar installations.

However, Silver price could have faced downward pressure as geopolitical tensions have eased in the Middle East, following the withdrawal of most Israel Defense Forces from southern Gaza, possibly due to growing international pressure, has contributed to easing tensions. However, peace talks between Israel and Hamas have yielded no progress in Egypt.

Traders will now shift their focus to the upcoming US inflation data and the release of FOMC minutes this week to gain more clarity on the timing of the Fed's monetary policy adjustments.

XAG/USD

Overview
Today last price	27.94
Today Daily Change	0.09
Today Daily Change %	0.32
Today daily open	27.85

Trends
Daily SMA20	25.4
Daily SMA50	23.94
Daily SMA100	23.77
Daily SMA200	23.5

Levels
Previous Daily High	28.08
Previous Daily Low	26.88
Previous Weekly High	27.5
Previous Weekly Low	24.75
Previous Monthly High	25.77
Previous Monthly Low	22.51
Daily Fibonacci 38.2%	27.62
Daily Fibonacci 61.8%	27.34
Daily Pivot Point S1	27.13
Daily Pivot Point S2	26.41
Daily Pivot Point S3	25.94
Daily Pivot Point R1	28.32
Daily Pivot Point R2	28.8
Daily Pivot Point R3	29.52

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.