Silver (XAG) Forecast: Bullish Rally Targets $44.22 as Silver Market Momentum Builds

Silver Breaks Out to Multi-Year High — Is $44 in Play?

Spot silver ended the week with a sharp upside breakout, clearing its previous 2025 high of $42.97 and closing in on the next near-term target at $44.22. Friday’s move confirms strong bullish momentum, fueled by renewed investor interest in precious metals and a broader macro backdrop that continues to support upside potential.

Fed Rate Cut Ignites Precious Metals Rally

The Federal Reserve’s decision to cut interest rates by 25 basis points on Wednesday gave the entire metals complex a boost. Lower rates reduce the opportunity cost of holding non-yielding assets like silver and gold, driving investor flows into hard assets. While inflation concerns remain, the Fed’s dovish tilt has opened the door for further easing this year, keeping both metals on a firm path.

Gold surged to an intraday record of $3707.56 following the announcement before easing into a strong weekly close at $3338.72. Silver followed suit, riding the gold tailwind and confirming the trend strength across the precious metals sector. Minneapolis Fed President Neel Kashkari’s comments suggesting more cuts are likely at upcoming meetings have only reinforced this bullish narrative.

Support Levels Hold as Silver Powers Higher

Silver’s technical structure remains firmly bullish. The 50-day moving average at $39.20 continues to provide trend support, with swing chart support stepping up at $41.14, $40.73, and $40.40. These levels offer short-term entry zones for dip buyers. The breakout above $42.97 marks a technical inflection, turning that level into fresh support.

Momentum traders are now focused on $44.22 as the next resistance level, with potential upside extension if gold regains momentum toward $3879.64 and possibly $4000.

Physical Demand Rotation Supports Silver

While gold remains in high demand—evidenced by India’s record premiums—silver is increasingly attracting attention as a more affordable alternative. Platinum is also gaining interest for similar reasons. This rotation suggests traders are positioning for broader exposure to metals without chasing gold’s elevated price levels.

In China, gold discounts widened to a five-year high, but this has not impacted silver’s appeal, as industrial demand and investor flows remain supportive.

Silver Outlook: Buy-the-Dip Remains the Play

Silver is in a confirmed uptrend with firm technical and macro support. As long as prices hold above $40.40, dip buying remains a favored strategy. The next target at $44.22 is within striking distance, with momentum to extend further if rate cut expectations grow or gold resumes its climb. Caution is advised on a break below $40.40, which could trigger a retracement toward the $39 handle.

More Information in our Economic Calendar.