Silver Price Forecast: XAG/USD remains capped below $31.00, further consolidation cannot be ruled out

• Silver price climbs to around $30.90 in Tuesday’s early European session, up 1.24% on the day. 
• Silver crosses above the 100-day EMA, but further consolidation cannot be ruled out with the neutral RSI indicator. 
• The first upside barrier is located at $31.68; the initial support level is seen at $30.50.

The Silver price (XAG/USD) gains traction to near $30.90 during the early European session on Tuesday. The white metal edges higher due to the potential stimulus measures from China and ongoing geopolitical uncertainty. 

However, JPMorgan analysts expect a near-term downside for base metals in early 2025 due to potential US tariffs on Chinese goods but see a recovery later in the year, bolstered by stronger Chinese economic stimulus and improved valuations.

According to the daily chart, Silver is set to resume its upside as the price crosses above the key 100-day Exponential Moving Average (EMA). However, further consolidation cannot be ruled out as the 14-day Relative Strength Index (RSI) hovers around the midline, indicating the neutral momentum of the white metal. 

The immediate resistance level for XAG/USD emerges near the upper boundary of the Bollinger Band of $31.68. Any follow-through buying above this level could pave the way to the $32.90-$33.00 zone, representing the psychological level and the high of November 5. The additional upside filter to watch is $34.55, the high of October 29. 

In the bearish event, sustained trading below $30.50, the 100-day EMA, could see a drop to $29.65, the low of November 28. A breach of the mentioned level could expose $27.70, the low of September 9. 

Silver price (XAG/USD) Daily Chart