Silver Price Prediction: Outperforms Gold As Demand Outlook Stays Stable

Silver price rose for the second successive day on Friday, trading at $32.96 per ounce in the European session after inching up by 0.03%. The gray metal has been on a strong uptrend this year, and has gained 14% year-to-date. With that, it has beaten its richer cousin, gold, which has risen by 12% YTD. Silver’s upside is driven by safe haven demand amid tariff war concerns, and stable industrial demand.

China’s economy is signaling recovery as economic stimulus measures yield fruits. That could boost industrial productivity and help keep silver price on the ascending trajectory. However, safe haven demand could take a beating following US President Donald Trump’s gesture indicating willingness to negotiate a way out of the tariff war against China. Trump stated that Chinese counterpart Xi Jingping could visit the United States, adding that trade negotiations could be on the cards.

However, there remains a lingering question as to whether the Trump administration could proceed with its blanket 25% tariffs on imports of pharmaceuticals, automobiles and semiconductors. The tariffs could take effect in early April, and such an unfolding could add safe haven propulsion to silver prices.

Meanwhile, technical metrics favour XAGUSD to stay on the upside. The RSI on the daily chart is at 66, while the Average Directional Index (ADX) reads 21. These signal strong upward momentum, calling for bullish bets on the gray metal.

Silver Price Forecast

The momentum on silver price signals that the buyers are likely to stay in control if action is kept above the pivot mark at $32.80. The upside will likely meet the first resistance at $32.98. However, a stronger momentum will break above that level and could test $33.12.

Alternatively, moving below $32.80 will shift the momentum to the downside. With that, the metal could find the first support at $32.64. The upside narrative will be invalid if the price breaks below that level. That could see the downward action extend to test the next support at $32.50.