HG MARKETS:

Silver (XAG/USD) extended its bullish momentum on Friday, climbing to an intraday high of $32.27, approaching the upper end of its weekly range. This positive traction is largely driven by robust festive demand and a surge in safe-haven purchases. The rise in silver prices aligns with a similar trend in gold, reflecting strong buying interest ahead of key Indian festivals, particularly Navratri.

Experts note that festive seasons typically trigger increased buying in precious metals, especially in India, a major market for both gold and silver. Rahul Sharma, a commodities strategist at the India Bullion Association, highlighted that this year’s demand is further bolstered by favorable market conditions and positive retail consumer sentiment. The Navratri festival, a significant period for purchasing precious metals in Hindu culture, has spurred strong demand from both stockists and retail consumers. As a result, silver has gained more than 2% this week alone, with buyers ramping up purchases in anticipation of further price increases. Additionally, a weakening Indian rupee has made local silver prices more attractive, encouraging buyers to invest ahead of potential price hikes. Analysts believe that the demand for both jewelry and investment-grade silver will likely continue to support prices in the near term, with expectations that the ongoing festival season could lift silver prices even further.

Beyond the festive demand, escalating geopolitical tensions have enhanced silver’s appeal as a safe-haven asset. Heightened conflict in the Middle East, along with concerns about a broader regional confrontation, has driven investors toward gold and silver as hedges against uncertainty. Analysts suggest that these geopolitical factors, combined with economic stimulus measures in China, could lead to further gains in silver. John Davis, a senior analyst at Global Commodities Research, remarked that given the volatile global landscape, silver may outperform gold in the medium term as both industrial and investment demand rise.

With increasing demand in both Indian and global markets, silver appears well-positioned for continued strength in the weeks ahead. The metal is poised for further gains if it breaks above the $32.24 resistance level, with immediate support at $31.78. Market participants should expect volatility amid robust demand and ongoing geopolitical risks.

Currently, silver is trading at $32.18, reflecting a 0.51% increase for the session, and maintaining a positive bias above its pivot point of $31.98. The formation of an ascending triangle pattern signals potential bullish continuation if prices can break through the immediate resistance at $32.24. A sustained move above this level could push silver higher to test the next resistance levels at $32.46 and $32.64. On the downside, support stands at $31.78, aligned with the 50-day EMA, and further at $31.61. If prices dip below $31.98, the short-term trend may turn bearish. With solid technical support and bullish momentum building, a breakout above $32.24 could trigger strong buying interest.