Silver Price Forecast: XAG/USD surges to near $31.00 amid escalated geopolitical tensions

Silver price advances due to escalated geopolitical tensions in the Middle East.
Israeli strikes in Rafah on Sunday killed at least 35 people, intensifying pressure surrounding the conflict in Gaza.
The subdued US Dollar reinforces the strength of the grey metal.

Akhtar Faruqui FXStreet

Silver price rises to $30.80 per troy ounce during the European session on Monday. Safe-haven commodities like Silver have gained ground due to escalated geopolitical tensions in the Middle East. According to CNN, Israeli strikes killed at least 35 people in Rafah on Sunday, increasing pressure over the war in Gaza.

Officials stated that ceasefire and hostage talks will continue next week. However, the negotiations between Israel and Hamas have stalled, with both parties unable to reach an agreement due to differences in key conditions.

The surge in the price of grey metal is also attributed to the subdued US Dollar (USD) after the emergence of the positive market sentiment after the softer University of Michigan's 5-year Consumer Inflation Expectations for May was released on Friday.

The UoM's 5-year Consumer Inflation Expectations for May on Friday. It eased slightly to 3.0%, below the forecasted 3.1%. Despite the upward revision of the Consumer Sentiment Index to 69.1 from a preliminary reading of 67.4, it still marked the lowest level in six months. These figures likely contributed to strengthening investors’ sentiment regarding potential rate cuts by the Federal Reserve.

However, recent hawkish remarks by Fed officials suggest that the central bank will maintain higher interest rates for a longer period. Fed Vice Chair Michael Barr emphasized the need for more time to evaluate the effectiveness of restrictive policies, while Atlanta Fed President Raphael Bostic reiterated his estimate for only one rate cut this year. High interest rates dampen the appeal of non-yielding assets like Silver.

XAG/USD

Overview
Today last price	30.83
Today Daily Change	0.47
Today Daily Change %	1.55
Today daily open	30.36

Trends
Daily SMA20	28.72
Daily SMA50	27.5
Daily SMA100	25.27
Daily SMA200	24.29

Levels
Previous Daily High	30.62
Previous Daily Low	30.05
Previous Weekly High	32.51
Previous Weekly Low	30.05
Previous Monthly High	29.8
Previous Monthly Low	24.75
Daily Fibonacci 38.2%	30.4
Daily Fibonacci 61.8%	30.27
Daily Pivot Point S1	30.06
Daily Pivot Point S2	29.76
Daily Pivot Point S3	29.48
Daily Pivot Point R1	30.64
Daily Pivot Point R2	30.92
Daily Pivot Point R3	31.22

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.

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