Silver (XAG) Forecast: Bullish Silver Outlook After Tariff Block Boosts Demand Hopes

Silver Pops as Tariff Reversal Opens Door for Renewed Industrial Demand

Silver prices staged a sharp rebound on Thursday, tracking gold’s recovery and capitalizing on dollar weakness following a key U.S. court ruling that blocked a controversial tariff plan. The move has broader implications for industrial commodities like silver, as traders begin to price in the potential for revived overseas demand amid reduced trade tensions.

At 11:40 GMT, XAG/USD is trading $33.44, up $0.46 or +1.40%.

Court Ruling Triggers Dollar Retreat, Lifting Precious Metals

The U.S. Court of International Trade invalidated President Trump’s proposed tariffs under the IEEPA, sending shockwaves through FX and metals markets. The initial reaction saw the dollar spike on safe-haven flows, pressuring silver lower.

However, sentiment flipped sharply as investors shifted focus from trade enforcement to legal gridlock. The greenback gave up gains, offering a boost to precious metals. Silver, which had dropped early in the session, reversed course and rallied hard into technical resistance levels.

Strong Technical Rebound Eyes Breakout Levels

Silver’s session low at $32.69 landed squarely on its 50-day moving average—a key level that has guided buyers repeatedly this year. That level held, triggering a rebound to $33.46.

The current setup has silver positioned to test a pair of tops near $33.70. If bulls break through, momentum could accelerate toward the next resistance band between $34.59 and $34.87. The technical picture remains constructive as long as support holds at the 50-day average.

Overseas Demand Outlook Improves on Trade Policy Shift

The blocked tariff initiative raises the possibility of improved international trade flows, a potential tailwind for industrial silver demand. With the legal appeal process set to drag on, markets are pricing in a longer window of tariff-free conditions.

This is particularly supportive for silver, which sees more than half of its global usage in industrial applications, including electronics, photovoltaics, and automotive components.

Silver Outlook: Bullish Setup Strengthens If Dollar Weakens Further

With the U.S. dollar now vulnerable to further headline-driven reversals, silver appears well positioned for a breakout. Technical support at $32.70 remains firm, and upside targets are clearly defined.

If the dollar softens further and legal uncertainty continues to weigh on U.S. trade policy, silver could retest and potentially clear the $34.87 level in short order. Traders should watch for confirmation above $33.70 as a potential launch point.

More Information in our Economic Calendar.