Silver (XAG/USD) currently trades at $29.28, reflecting a slight 0.23% dip during the day.

Despite this, it remains on an upward trajectory driven by several key factors. A weaker US Dollar, trading near 108.30, has bolstered Silver’s appeal by making it more affordable for international buyers. Geopolitical uncertainties, ranging from Middle East tensions to the Russia-Ukraine conflict, continue to steer investors toward safe-haven assets like Silver.

Moreover, Silver’s affordability compared to Gold makes it an attractive option for risk-averse investors seeking portfolio diversification. Its dual role as an industrial and safe-haven asset positions it uniquely amid global market volatility.

Central Bank Demand Fuels Silver’s 2025 Potential

Much like Gold, Silver has seen strong support from central bank purchases. According to recent forecasts, central banks are expected to maintain robust buying patterns in 2025, providing a significant tailwind for Silver prices. Additionally, China’s economic recovery is expected to spur demand for industrial metals like Silver. With President Xi Jinping’s commitment to growth-focused policies, construction and manufacturing sectors could see a resurgence, further boosting Silver’s industrial demand.

Technical Outlook: Key Levels to Watch

Silver remains at a pivotal point, with immediate resistance at $29.51. A sustained break above this level could drive prices toward $29.88 and $30.22. On the downside, support lies at $29.05, with further levels at $28.82 and $28.43.

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Technical indicators suggest consolidation, with the RSI at 36.79 indicating weak momentum. Silver is hovering near its 50-day EMA at $29.29, a level that aligns with the current price, reflecting a neutral bias. However, breaking above $29.51 could signal bullish momentum, while a drop below $29.05 may trigger further declines.

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.

His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.

His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.