Silver (XAG/USD) experienced a slightly bearish start to the week but managed to stay above the crucial support level of $30.98. Investor caution prevailed before the release of the US Purchasing Managers Index (PMI) data later today. Despite the cautious sentiment, silver prices continue to be supported by a weakening US dollar, which has been under pressure due to indications of potential rate cuts by the Federal Reserve later in the year. The recent 50 basis point rate cut by the Federal Reserve has increased silver’s attractiveness as a non-interest-bearing asset. This unexpected move by the Federal Open Market Committee (FOMC) has put downward pressure on the dollar, prompting investors to turn to silver as a safe haven. Supporting industrial demand for silver, the People’s Bank of China (PBoC) injected CNY 74.5 billion through a 14-day reverse repo operation, with an interest rate reduction from 1.95% to 1.85%. Additionally, an additional CNY 160.1 billion was provided through a 7-day reverse repo at a steady rate of 1.7%. These liquidity injections, along with stable Loan Prime Rates (LPR), could boost industrial demand for silver in the upcoming months. As liquidity enters the economy, manufacturing activity is expected to rise, fueling demand for silver in industrial uses and further stabilizing its prices. The combination of silver’s safe-haven status, a declining dollar, and increasing industrial demand suggests a potential price increase as the year progresses. Short-Term Outlook Silver (XAG/USD) is currently above the $30.98 support level, and a potential breakout above $31.42 could target $31.75 and $32.08, with support levels at $30.72 and $30.27. Silver Price Forecast: Technical Analysis Silver (XAG/USD) is trading at $30.98, showing a decrease of 0.23%. The market seems to be consolidating near the pivot point of $31.13, a critical level for future price movements. A breach of the immediate resistance at $31.42 could lead to further advances towards $31.75 and $32.08. Key support is at $30.72, with additional levels at $30.27 and $29.90. The 50-day EMA at $30.38 provides strong support, and as long as silver remains above $30.75, the overall outlook remains bullish. However, a drop below this level may result in more significant declines, so traders should monitor these levels closely.