- Summary:
- Silver price winning streak was interrupted on Monday, but the broader global market sentiment signals a likely continuation of the upside.
Silver price traded upwards in Tuesday’s European session as safe haven prospects and industrial demand returned to focus. The greyish metal was up by 0.30% and traded at $29.70 per ounce at the spot market. Silver had been on an eight-session winning streak prior to being interrupted on Monday as traders digested Friday’s US jobs data.
The US Non Farm Payrolls (NFP) numbers rose beyond forecasts in December, with unemployment rate declining to 4.1% from November’s 4.2%. Traders briefly favoured the dollar as the market readjusted to the news, putting downward pressure on silver prices.
Why silver rebounded
However, concerns over the potential disruptions to the US economy by Donald Trump’s tariff policies have safeguarded silver’s safe haven appeal. Silver’s richer cousin, gold, has also seen its prices rise in recent days, gaining 0.5% in the last five sessions. The two metals are used as a hedge against inflation, hence their heightened demand.
Also, industrial demand for silver is likely to rise this year, as China’s economy stabilises and the electronic vehicle (EV) industry continues growing. Sales of EVs and plug-in hybrids rose by 25.7% YoY in December 2024 and the industry’s demand for silver is expected to rise by over 40% in the next decade. The metal is also likely to register growth in demand from manufacturers of electronics and photovoltaics in 2025.
Silver Price Prediction
The momentum on silver price calls for a continuation of the upside above the pivot point at $29.65. XAGUSD will likely meet the first resistance at $29.85 but could go higher and test $30.05 if the buyers extend their control.
On the other hand, breaking below $29.60 will favour the sellers to take control of the momentum. That could send silver prices lower to the first support level at $29.42. Below that level, the upside thesis will be invalid. Also, the resulting momentum could extend the decline and test $29.20.
