Silver Price Forecast: Bullish engulfing pattern puts $64 in sight

Silver (XAG/USD) experienced a 2.80% rally on Friday, as buyers bought the dip at $59.17, pushing the price above $60.00 to reach a two-day high of $61.19. Despite sitting below key moving averages, the metal consolidated. A potential bullish engulfing pattern emerged, which, if confirmed, could enable bulls to challenge the 100- and 50-day SMAs around $63.97-$64.29.

A breach of this area might trigger a move towards a resistance trendline near $65.00, before targeting the $70.00 mark. On the downside, the first support level is $60.00, with a potential move to the October 8 swing low of $58.50 and August 3 low of $56.57 if a decisive breakout occurs. Silver is a valuable investment, often used as a store of value and hedge during high inflation periods.

Its price can be influenced by various factors, including geopolitical events, interest rates, and industrial demand. Silver's moves are closely tied to those of Gold, with their status as safe-haven assets being similar. Analysts can use the Gold/Silver ratio to assess the relative valuation of both metals.