Silver Price Forecasts: XAG/USD hits fresh two-month highs with all eyes on Jackson Hole

Silver (XAG/USD) is rising for a second day on Friday, with traders focusing on Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole Symposium later in the day. The precious metal reached a two-month high just below $71.00, following a bounce from the $67.00 range on Thursday, signaling a possible end to its four-week rally.

Investors are eagerly awaiting Warsh's speech to gain further insight into the central bank's monetary policy, following disappointing guidance at the recent monetary policy meeting. Kansas Fed President Jeffrey Schmidt and Cleveland Fed President Beth Hammack had called for immediate monetary tightening after US Personal Consumption Expenditures (PCE) Price Index figures were released the day before.

XAG/USD is currently trading at $70.44, with near-term price action showing a bullish bias since its low of $55.00 in July. Momentum indicators on the daily chart remain positive, with the Relative Strength Index (14) at 66 approaching overbought levels, and the Moving Average Convergence Divergence (MACD) indicating moderate bullish momentum.

Resistance is expected at mid-June highs between $71.35 and $71.55, followed by a key resistance area at the 200-day Simple Moving Average (SMA) at $72.50. A break above this level could push prices toward the June 4 high near $75.00. On the downside, Thursday's low of $67.63 may act as support, with secondary floor near $63.25 and the August 6 low around $60.90 providing further support.

Silver is a precious metal that investors often turn to for diversification or as a hedge during high-inflation periods due to its intrinsic value. It can be bought physically or traded through Exchange Traded Funds. Factors such as geopolitical instability, recession fears, yieldless asset status, interest rates, and USD strength can influence Silver prices.

Demand from industrial sectors, investment demand, mining supply, and recycling rates also impact the metal's price. Silver is closely linked to Gold, and their prices often move in tandem as safe-haven assets. The Gold/Silver ratio may help determine the relative valuation of the two metals.