Silver (XAG) Forecast: 50-Day Moving Average Breakout Sparks Rally Toward $33.70

Silver Tracks Gold Higher as Safe-Haven Demand Builds

Silver is trading firmer on Tuesday, following gold’s strong rebound and gaining traction above its 50-day moving average. Traders are positioning ahead of the U.S. Federal Reserve’s policy decision, while safe-haven interest—sparked by escalating tariff tensions—is lifting both metals. Bullion-led momentum and favorable technical setups are creating a bullish tone in the silver market, with buyers watching key breakout levels.

At 13:09 GMT, XAG/USD is trading $33.05, up $0.56 or +1.74%.

Break Above Technical Pivot Shifts Momentum

Silver’s climb above the 50-day moving average at $32.60 has turned short-term momentum upward, with attention now fixed on the recent swing high at $33.70. A breakout above this level could open the door to a more aggressive rally. Strong support rests below in the $32.19 to $31.45 retracement zone, underpinned by the 200-day moving average at $31.13. These levels provide a solid technical foundation for continued upside as long as macro pressures persist.

Gold’s Surge Provides Cross-Market Tailwind

Gold’s sharp rebound after a seven-session pullback has provided indirect support to silver, which often benefits from broader precious metals flows. With gold reclaiming $3351.08 and heading toward a potential retest of its all-time high at $3500.20, silver’s own strength appears more durable. The bid in gold is driven by safe-haven flows tied to renewed trade war concerns, especially U.S. tariffs on films and pharmaceuticals, and fresh Chinese demand following its national holidays.

Fed Decision in Focus as Traders Eye Policy Signals

The Federal Reserve is widely expected to keep interest rates steady, but traders are watching for any indication of cuts later this year. Current market pricing anticipates 75 basis points of easing, which would lower yields and support non-yielding assets like silver. The 10-year U.S. Treasury yield remains range-bound near 4.35%, while the 2-year sits at 3.82%. A dovish tilt from Chair Powell could act as a fresh catalyst for silver bulls.

Dollar Weakness Reinforces Bid

Adding to silver’s appeal is a softer U.S. dollar, which is losing ground on doubts over trade progress. The drop in the dollar index, alongside gains in emerging Asian currencies and a firmer yuan, improves the relative value of silver for foreign buyers. As in gold, dollar weakness is increasingly part of the silver bullish narrative, especially when coupled with geopolitical uncertainty.

Silver Outlook: Bullish Bias Above Key Support

Silver holds a constructive tone above $32.60, with immediate targets at $33.70 and beyond. The combination of gold’s renewed strength, Fed rate cut expectations, and a weakening dollar suggests further upside potential. As long as the market defends the $31.45–$32.19 support zone, silver remains poised to extend higher alongside gold’s push toward its record. A breakout above $33.70 would confirm renewed upside momentum.

More Information in our Economic Calendar.