Silver Price Forecast: XAG/USD trades near $34.50, upside seems possible due to caution

• Silver price may regain its ground due to market caution ahead of the US presidential election.
• Silver prices faced challenges as the Israeli PM Netanyahu may discuss a diplomatic resolution to the war in Lebanon.
• The dollar-denominated Silver received support from a lower US dollar and Treasury yields ahead of US data releases this week.

Silver prices (XAG/USD) dips slightly to around $34.30 during the Asian trading hours on Wednesday. However, Silver gained over 2% on Tuesday amid ongoing uncertainty surrounding the US presidential election.

A three-day poll conducted by Reuters/Ipsos, which concluded on Sunday and was released on Tuesday, indicated that the race is essentially tied as the November 5 election approaches. Vice President Kamala Harris, the Democratic candidate, has seen her lead over Republican nominee Donald Trump narrow to just one percentage point, with 44% support compared to Trump's 43%.

Silver prices might have encountered difficulties due to safe-haven flows, following an Axios reporter post on X that Israeli Prime Minister Benjamin Netanyahu is set to meet with various ministers and military and intelligence leaders to discuss a diplomatic resolution to the war in Lebanon, according to Reuters.

The dollar-denominated commodity, like Silver, typically benefits from a weaker US dollar and lower Treasury yields as traders exercise caution ahead of significant US economic data releases this week. A declining US dollar makes Silver more affordable for foreign buyers, which can boost demand for the precious metal.

The preliminary US Q3 Gross Domestic Product (GDP) figures and October's ADP Employment Change are set to be released on Wednesday. Additionally, US PCE inflation and Nonfarm Payrolls will be closely monitored on Thursday and Friday, respectively.

Investors are also anticipating the upcoming meeting of China's parliament, scheduled for November 4-8, as reported by state media on Friday. There is considerable interest in the gathering of the standing committee of the National People's Congress, which is expected to provide updates on potential fiscal stimulus measures.