Silver (XAG) Forecast: Buyers Are Taking a Breather as Silver Pulls Back From Record Highs

Silver Reclaims $58 After Early Dip as Bulls Reassert Control

Spot silver (XAGUSD) has turned positive on Tuesday, erasing its early setback and pushing back above $58.02 after trading as low as $56.59 earlier in the session. The recovery signals that buyers remain firmly engaged following Monday’s record high at $58.85, with the market now stabilizing rather than slipping into deeper corrective pressure. The day’s range — $56.59 to $58.39 — reflects a controlled cooling phase after a nearly 100% year-to-date surge.

Profit-Taking Fades as Buyers Step Back In

The initial pullback was driven mainly by profit-taking after Monday’s vertical climb, a natural reaction given the speed of the advance. Rising Treasury yields, with the 10-year holding near 4.114%, added some early pressure by raising the opportunity cost of holding metals. But the rebound into positive territory shows that dip-buyers remain ready to absorb supply, especially as long-term fundamentals stay supportive.

Silver continues to benefit from strong demand tied to gold’s bull trend, structural physical deficits, and its proposed inclusion on a U.S. critical minerals list. These factors help maintain a deep pool of underlying buyers willing to step in when momentum briefly cools.

Key Technical Levels Remain Central to Short-Term Direction

Despite today’s recovery, traders continue to watch the $54.49–$54.39 zone as the primary downside buffer should selling resume later this week. Above that, the 50% retracement at $53.74 remains the next meaningful level. The 50-day moving average at $49.94 still serves as the defining support for the broader trend and a line that many institutional players are using as a long-entry reference.

On the topside, the market’s ability to stabilize back above $58 strengthens the case for another attempt at the $58.85 record. If bullish momentum accelerates, breakout buyers may reengage quickly.

Fed Expectations Shape Market Tone

Traders are gearing up for the Federal Reserve’s December 9–10 meeting, where money markets now price an 87% chance of a quarter-point rate cut — a sharp shift from 35% two weeks ago. Lower rates typically boost precious metals by reducing the appeal of yield-bearing assets.

This week’s U.S. data slate — ADP employment, jobless claims, and the delayed September PCE report — remains critical. The latest ISM manufacturing release confirmed ongoing contraction, while speculation surrounding Kevin Hassett as a potential Fed chair continues to draw interest.

Market Forecast

Silver’s rebound above $58 reinforces the near-term bullish stance. A sustained hold here keeps the door open for a retest of $58.85. Failure to push higher would shift attention back toward support at $54.49–$54.39 and then $53.74.

With rate-cut expectations elevated and physical supply tight, the market bias stays bullish on dips, with traders favoring strength above $58 and deeper value plays near the 50-day average.

More Information in our Economic Calendar.