Silver (XAG) Forecast: Geopolitical Tensions and Russian Reserves Drive Silver Market Outlook…

Gold also surged on Monday, hitting new highs due to geopolitical uncertainties, including tensions in the Middle East and speculation around U.S. election outcomes. With major central banks cutting interest rates, gold’s appeal as a safe-haven asset has been enhanced. Lower rates, combined with global risk factors, support the continued up trend of both gold and silver, as they typically move in tandem due to their status as precious metals.

China’s recent economic stimulus, alongside the Federal Reserve’s anticipated rate cuts, has further reinforced gold’s appeal, though rising U.S. Treasury yields are a limiting factor. Nevertheless, the broader environment remains favorable for both gold and silver, as economic uncertainty drives investor interest in these assets.

Short-Term Silver Market Forecast

While silver faces near-term resistance at $34.35, the fundamentals remain strong, particularly with Russia’s central bank entering the market as a buyer. The overbought technicals suggest a possible short-term pullback, especially if profit-taking emerges.

However, as long as silver holds above key levels like the 50-day moving average, the market remains bullish. Given the ongoing industrial demand and new central bank interest, silver could test higher levels by the end of the year, with upside potential if global uncertainties persist. Traders should watch for volatility, but the broader outlook suggests continued strength in the silver market.