silver prices are currently experiencing an upward trend, trading around $30.90 in early European market activities, reflecting a 1.24% increase for the day. As it surpasses the significant 100-day Exponential Moving Average, the momentum could lead to further gains, although a period of consolidation remains a possibility given the neutral stance indicated by the Relative Strength Index.
The rise in silver is attributed to anticipated stimulus measures from China alongside persistent geopolitical tensions. Yet, analysts express caution regarding the future performance of base metals, forecasting potential declines in early 2025 due to expected tariffs imposed by the U.S. on Chinese imports. Despite this, a rebound in base metals later in the year is anticipated, driven by stronger economic support from China and improved market valuations.
On technical analysis, silver seems poised for further gains, especially after breaching the 100-day EMA. The immediate resistance is noted at $31.68, forming the upper limit of the Bollinger Band. A decisive move beyond this level could lead prices towards the significant psychological barrier between $32.90 and $33.00, coinciding with the high observed on November 5. A critical level to monitor for potential bullish continuation is $34.55, marking the peak from October 29.
Conversely, if silver sustains trading below $30.50, it may trigger a decline toward $29.65, a low reached on November 28. A further drop below this point could expose prices to significant support around $27.70, last seen in early September. As such, traders and investors should remain vigilant about evolving market conditions that may impact silver ’s trajectory in the coming months.
