The price of silver (XAG/USD) continued its upward trend on Thursday, reaching approximately $28.78 in the Asian trading session. The strong performance of silver is mainly attributed to increasing global demand, particularly in industrial sectors. Industrial usage now represents 64% of silver consumption worldwide, a significant jump from 50% last year, marking a 19% surge. Companies like Yukon Metals and First Majestic have seen robust results, contributing to the ongoing rally. Rising industrial demand and supply limitations are influencing prices The heightened demand for silver is straining global supply chains, presenting challenges for industries reliant on this precious metal. Analysts from Sprott Money and Investopedia emphasize the importance of monitoring the gold-silver ratio, indicating expectations of a potential surge in silver prices later in the year. The Silver Institute predicts that industrial demand will account for 58.3% of global silver consumption, equivalent to around 1.2 billion ounces by 2024. Mining firms are also increasing their activities, with Yukon Metals reporting positive silver assay outcomes from its Star River Project and First Majestic Silver enhancing production through a merger with Gatos Silver. While Pan American Silver faced a decrease in production due to operational hurdles, they anticipate a rebound later in the year. In another development, Silvercorp Metals disclosed an increase of 15% in silver reserves, particularly at the Gaocheng Mine. Potential boost for silver prices with ECB and Fed interest rate cuts Silver’s appeal as a non-interest-bearing asset is growing amid speculations of interest rate cuts by major central banks. The European Central Bank (ECB) is anticipated to lower rates by 25 basis points to 4.0% in its upcoming meeting. Simultaneously, the U.S. inflation data recorded a three-year low of 2.5% in August, heightening the possibility of a similar rate adjustment by the Federal Reserve. Investors are eagerly awaiting U.S. Producer Price Index (PPI) data and Initial Jobless Claims reports to gain insights into the Fed’s future actions. Short-Term Projections Silver (XAG/USD) remains above $28.07, with resistance at $28.54. A breakthrough above this level could drive prices towards $29.12, while a failure might lead to a drop to $27.71. Technical Outlook for Silver (XAG/USD) Price Forecast Silver – Chart Silver (XAG/USD) is currently trading at $28.17, registering a 0.21% increase in today’s trading session, displaying steady upward movement. The price is holding above immediate support at $28.07 but faces a crucial resistance level at $28.54, coinciding with the 50-day Exponential Moving Average (EMA). In the event of a successful breach of this barrier, silver could target $29.12 and potentially $30.12 in the short term. However, failure to sustain above $28.50 might trigger a significant selling trend, with next support levels at $27.71 and $27.29. The technical indicators advocate caution, as the 50-day and 200-day EMAs are converging, indicating a critical juncture for the market.