Silver (XAG) Forecast: Gold’s Strength and Weak Dollar Lift Prices—Will Resistance Hold?

Silver Surges as Buyers Defend Key Support Levels

Silver is rallying sharply to start the week, gaining strength after successfully holding above its 50-day moving average at $30.97 and testing the key retracement zone between $31.06 and $30.52. Traders are targeting higher levels, with resistance at the 50% pivot of $31.81, a minor pivot at $32.10, and the 61.8% retracement at $32.53.

Gold’s strength is also providing indirect support, as the two metals often move in tandem. With gold attempting to stabilize above its key support levels, silver is benefiting from bullish sentiment in the broader precious metals market.

At 13:28 GMT, XAG/USD is trading $31.61, up $0.46 or +1.48%.

Weaker Dollar and Economic Uncertainty Boost Silver’s Appeal

A weaker US dollar is contributing to silver’s upside momentum, with the dollar index down 0.66% from a recent high. Since silver is priced in dollars, a declining dollar makes it more attractive to foreign investors.

Additionally, rising trade tensions are supporting safe-haven demand. President Trump’s latest tariff threats on Chinese goods, which could push total tariffs to 20%, are fueling concerns over economic instability. Similar to gold, silver is benefiting from investors hedging against potential financial market turbulence.

Fed Rate Expectations Could Influence Silver Prices

Silver, like gold, tends to react to changes in US interest rate expectations. Recent inflation data suggests the Federal Reserve may not be in a rush to cut rates, which pressured gold in the last session. If higher rates persist, non-yielding assets like silver could face some resistance.

However, if upcoming US payroll data signals economic weakness, it could revive expectations for Fed rate cuts, potentially driving silver prices higher.

Silver Price Forecast: Bulls Aim for Key Resistance Levels

With silver rebounding from critical support, traders will watch for a push toward $31.81, $32.10, and $32.53. If momentum builds, a breakout could drive silver further into bullish territory.

On the downside, losing $30.52 could trigger selling pressure, bringing $30.00 and lower levels into focus.

For now, silver remains in an uptrend, with gold’s movements and the dollar’s performance playing a key role in determining the next leg higher.

More Information in our Economic Calendar.