The escalating tension in the Middle East is driving strong safe-haven assets such as the white metal. Silver prices are holding strong within different geopolitical factors that have lasted for months and are still ongoing, starting from the Russia-Ukraine war and the US-China relations, which are playing a key role in influencing the overall market sentiment. Besides the ongoing Middle East tensions, which lead investors toward safe-haven assets.
Silver prices are now trading above the $37.00 level, and it’s expected that it can keep its consolidation to make strong gains reaching its highest level since Feb. 201,2, and it seems that silver prices will keep the bullish uptrend.
Technical Outlook for Silver Prices:
From the technical perspective, the overbought signals from the daily RSI indicate that the silver bulls are holding back to place a fresh bet. thereby, any correction might be seen as a buying opportunity.
On this technical outlook, let’s look at the silver price from two different angles, the first will be on the short-term trading, 4-hour time frame, and the second will be on the monthly time frame.
Four-hour time frame outlook for silver price prediction:
From the technical perspective, silver made a breakout overnight, which created a bullish flag pattern which confirming the expectation of bullish trend continuation. However, the RSI indicator gives an overbought signal, which leads investors to be a little bit cautious. Hence, the advice is to wait for some near-term correction or pullback and then get ready for more gains.
Any corrective action in the near term will be considered a new opportunity for the buyers. The XAGUSD will be limited between the $36.85- 36.90 area. Any breakdown in this area may expose silver prices to reach lower levels toward the support line of $35.35, reaching a lower support at $36.00. Any break below the support level of $36.00 could pave the way for some downside in the near term.
Monthly time frame outlook for silver price prediction:
When you look at silver prices from a wide angle, you can see how the silver prices have a strong consolidation; however, it has volatility, but the white metal keeps its bullish momentum for a long time.
The key support level is at $ 33.68, supporting the silver prices to be trading above the $37.00 level. Any breakout above the resistance level at $39.329 could support the price to reach a higher resistance level toward the $44.18 level.
Silver could potentially reach $46 per ounce during 2025 in a bullish scenario, especially when the US-China reach a quicker solution and hawkish federal reserve policy.
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