Silver Price Forecast: The bullish trend for Silver/US Dollar continues, and a rebound is expected to reach $41.00.

Silver prices have shown strong recovery after a brief pullback, currently trading around $40.80. Technical Analysis on the daily chart shows that the precious metal prices are steadily rising within a rising channel pattern, which further reinforces the market's bullish sentiment.

The 14-day Relative Strength Index ( RSI ), although slightly below the 70 level and in the mild overbought zone, still maintains strong momentum in the current rising trend, with buyers firmly in control of the market. Additionally, the silver/USD trading is above the 9-day Exponential Moving Average ( EMA ), further confirming that short-term price momentum is strengthening.

Key Price Level Analysis

Resistance:

• The primary resistance is located at $41.47, which is the highest point since September 2011.
• If this key resistance is broken, the upper boundary of the rising channel at about $42.00 will become the next target.
• After effectively breaking through these resistance levels, metal prices are expected to challenge the psychological barrier of $43.00.

Downward Support:

• The main support is at the 9-day EMA of 40.16 USD.
• Next is the lower boundary of the rising channel at approximately $39.60.
• If it breaks below the channel support, it may weaken bullish sentiment, and the price could pull back to the 50-day EMA of $38.14.

Despite the technical indicators showing that silver is in the overbought zone, the current strong trend continues, and market sentiment leans bullish. Investors should closely monitor the breakout of the key resistance level at $41.47, as this will determine whether silver can sustain upward momentum to challenge higher price levels.

Key Factors Affecting Silver Prices

As a safe-haven asset, the price of silver is influenced by various factors, including geopolitical instability, concerns about economic recession, interest rate changes, and the performance of the dollar. Similar to gold, silver tends to perform well during times of market uncertainty, but its industrial demand factors make its price fluctuations more complex.

The changes in industrial activity in major economies such as the United States, China, and India directly affect the demand for silver, especially in areas like electronics and solar energy. Additionally, silver prices typically follow the trend of gold, and the gold/silver ratio can serve as an important indicator for assessing the relative valuation of the two metals.

I personally believe that under the current global economic uncertainty and geopolitical tensions, the appeal of silver as a safe-haven asset will continue to increase, and prices are expected to rise further. However, investors should also be wary of the technical analysis overbought risk and manage their risks properly.

Disclaimer: This article is for reference only, and past performance does not guarantee future results.